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Aveo up 35% premarket on Kyowa Kirin buy back of tivozanib rights

|About: AVEO Pharmaceuticals, ... (AVEO)|By:, SA News Editor

AVEO Oncology (NASDAQ:AVEO) and Kyowa Kirin Co., Ltd. (OTCPK:KYKOF) have amended their license agreement allowing the latter to repurchase the non-oncology rights to tivozanib in AVEO territories, including the U.S. and EU. Under their original 2006 contract, AVEO had exclusive rights for all indications.

Under the terms of the amended agreement, Kyowa Kirin will re-acquire the above rights excluding those sublicensed to EUSA Pharma. It will pay AVEO $25M upfront, up to $391M in milestones and tiered high single-digit to low double-digit royalties on net sales. It will also waive AVEO's obligation for a $18M milestone payment upon U.S. marketing approval.

Tivozanib, branded as FOTIVDA, is currently approved in the EU, Norway and Iceland for kidney cancer.

AVEO is up 35% premarket on robust volume.

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