Ascalon International signs license agreement with CerRx

Ascalon International Inc., a newly established oncology drug developer, today announced an agreement for an exclusive option to license CerRx Inc's intravenous (IV) fenretinide (4-HPR) product.

Ascalon will continue its ongoing collaboration with CerRx but will assume full responsibility for development and commercialization for IV fenretinide. CerRx will receive developmental milestone payments and a share of certain sublicensee income and royalties. Additional terms of the deal were not disclosed.

"We are delighted to bring in IV fenretinide as the first formal agreement that demonstrates Ascalon's focus on developing highly promising products in a precision-based manner," said Ed Jacobs, president and CEO of Ascalon. "This offers a tremendous opportunity to develop a molecule with an advantageous new formulation, advanced skillfully thus far by CerRx, with potential to address a significant unmet need in a choice of several promising hematological and solid tumor indications."

Fenretinide is a first-in-class, synthetic vitamin-A like molecule that selectively increases ceramide content to toxic levels in cancer cells, but not in normal cells. Phase I studies using the IV formulation have already indicated significant activity in T cell lymphomas and clear potential in solid tumors such as esophageal adenocarcinoma.

"Based on its strategy, commitment and expertise we believe Ascalon to be the most experienced and positive partner capable of maximizing the potential of IV fenretinide said Barry J Maurer, MD, PhD, chief medical officer at CerRx. "We considered the possibility of a larger oncology partner but we are excited by Ascalon's plans, energy and willingness to work with us and deliver what patients need, and that's IV fenretinide on the market as quickly as possible."

Jacobs added, "This arrangement with CerRx also shows we can develop a flexible deal structure that enables the strongest opportunities to be developed optimally and ensure all parties have the best chance for success. Since starting in mid-2009, Ascalon has quickly developed a strong operational platform to achieve its goal of creating a diversified portfolio of promising oncology drugs using cutting edge development methodologies and capitalizing on the growing trend in the pharmaceutical industry for strategic outsourcing of development programs. The CerRx partnership shows we are on the right track, and this is further confirmed by the volume of dialogue we are now having with various potential product partners, large and small, and the positive discussions we are having with further investors."