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Eisai gives lymphoma program back to Epizyme

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Executive Summary

Eisai has given all development and commercialization rights of its EZH2 program, except for in the Japanese market, back to originator company Epizyme. The program includes lymphoma therapy EPZ-6438, a first-in-class inhibitor of EZH2, which is currently being evaluated in Phase I/II clinical studies. Under the new agreement, Epizyme will make a $40m upfront payment to Eisai, with a total of up to $20m in potential clinical milestone payments and up to $50m in potential regulatory milestone payments. Epizyme will pay Eisai a royalty at a percentage in the mid-teens on sales of EPZ-6438 outside of Japan, and Eisai will pay Epizyme a royalty at a percentage in the mid-teens on sales in Japan. Eisai will have a limited right of first negotiation for Asia rights if Epizyme decides to license Asia rights to a third party. Following completion of the transition of EPZ-6438 from Eisai to Epizyme, the Massachusetts-based biopharma plans to conduct a five-arm Phase II study in approximately 150 patients with non-Hodgkin's lymphoma.

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