Zytiga and ARN-509 are both prostate cancer drugs that work with blocking testosterone but are very different drugs and could even possibly work together. ARN-509 is an Androgen Receptor inhibitor. Johnson and Johnson is keeping an eye n Zytiga’s patent as well. $650 million is going out now to Aragon and #350 million if ARN-509 meets the required milestones. Aragon’s breast cancer drug is being spun off to a separate company which will be names Seragon Pharma and the current CEO of Aragon will run it. It will probably be pretty expensive when ready to go to market. BD
(Reuters) - Johnson & Johnson said it would pay up to $1 billion for Aragon Pharmaceuticals and its experimental drugs for prostate cancer, to bolster J&J's role in the field after it acquired another experimental prostate-cancer treatment four years ago that has become a leading brand.
J&J on Monday said Aragon's lead product, called ARN-509, has potential to help patients whose prostate cancer has not yet spread to other parts of the body, as well as patients whose cancer has spread.
By contrast, J&J's blockbuster Zytiga treatment, acquired through its $1 billion purchase of Cougar Biotechnology in 2009, was approved in 2011 only for patients whose cancer has already spread.
Moreover, although Zytiga has become a blockbuster only two years after being launched, it could face competition from cheaper generics by 2016 in the United States, while ARN-509 will have U.S. marketing exclusivity until 2028, Leerink Swann analyst Danielle Antalffy said in a research note
The deal does not include development of Aragon's treatment for breast cancer, which will be spun off into a separate company called Seragon Pharmaceuticals ahead of the deal and will be run by Aragon's chief executive officer.