Mersana Therapeutics has entered into a research and exclusive license agreement with Teva Pharmaceutical Industries to develop and commercialize XMT-1107, a novel fumagillin analog for the treatment of all indications, including cancer. Mersana plans to initiate a Phase I trial for XMT-1107 in 2Q10.

Teva will receive an exclusive license to XMT-1107 for all indications worldwide, excluding Japan, where Mersana will retain rights. Mersana will be eligible to receive as much as $334 million if all development, regulatory and commercial milestones are met, as well as royalties on sales. Teva will be responsible for all development costs for XMT-1107, excluding Japan.

“Our agreement with Mersana is yet another example of Teva’s commitment to early-stage partnering as a means to enhance our innovative pipeline,” said Dr. Aharon Schwartz, vice president of Teva Innovative Ventures.“We have been impressed by Mersana’s success with the Fleximer technology and the potential of XMT-1107.With a focus on oncology, auto-immune and neurology, Teva, through its Innovative Ventures group, seeks partnerships with companies and academia to develop new specialty medicines.”