(Updates with CEO comment in third paragraph.)
Oct. 12 (Bloomberg) -- Bayer AG settled a lawsuit with Onyx Pharmaceuticals Inc. over the promotion and sale of regorafenib, a cancer treatment. Onyx jumped 6.5 percent in early U.S. trading.
Under the agreement reached yesterday, Bayer will pay Onyx a 20 percent royalty on worldwide sales of regorafenib for use in oncology, South San Francisco-based Onyx said today in a regulatory filing. Leverkusen, Germany-based Bayer also will pay Onyx $160 million for the Japanese royalty rights for Nexavar, a liver-cancer treatment, according to the filing.
“These new agreements strengthen the collaboration and provide Onyx the opportunity to participate significantly in the market potential of regorafenib,” Onyx Chief Executive Officer N. Anthony Coles said in a statement distributed by PR Newswire.
Onyx climbed $2.09 to $34 in trading before U.S. markets opened. The shares had declined 13 percent on the Nasdaq Stock Market this year before today.
Regorafenib hasn’t been approved by the U.S. Food and Drug Administration or the European Medicines Agency, according to the statement. Nexavar is approved in the U.S.
The case is Onyx Pharmaceuticals Inc. v. Bayer Corp., 09- 2145, U.S. District Court, Northern District of California (San Francisco).
--Editors: Stephen Farr, Bruce Rule
To contact the reporter on this story: Andrew Dunn in New York at email@example.com.
To contact the editor responsible for this story: Michael Hytha at firstname.lastname@example.org.