Infinity Pharma buys an option on future IPI-145 royalties

|About: Infinity Pharmaceutica... (INFI)|By:, SA News Editor

Infinity Pharmaceuticals (INFI +0.2%) purchases an option to buy out all future royalty payments due to Takeda's Millennium Pharmaceuticals for sales of IPI-145, Infinity's oral PI3K inhibitor.

In exchange for a one-time upfront payment of $5M, the company receives an option to terminate its obligation to Millennium future royalties related to IPI-145 in oncology. Infinity may exercise the option by providing written notice to Millennium and paying a one-time exercise fee of $52.5M on or before March 31, 2015.

Infinity will remain obligated to pay Millennium milestones related to the first two distinct PI3K product candidates that gain regulatory approval, including IPI-145. The remaining payments include up to $220M in success-based regulatory milestones, up to $230M in commercial milestones and up to $5M in development milestones.