Rexahn Pharmaceuticals has announced that it has reached a licensing and stock purchase agreement with Teva Pharmaceuticals for the development of its novel anti-cancer compound.

The compound, RX-3117, is a small molecule, new chemical entity (NCE), nucleoside compound that has an anti-metabolite mechanism of action, which has shown therapeutic potential in a broad range of cancers including colon, lung and pancreatic cancer.

Under the agreement Teva has agreed to purchase shares of Rexahn’s common stock for $3.5m. Rexahn will also be eligible to receive additional development, regulatory and sales milestone payments as well as receive royalties on net sales worldwide.

Rexahn’s chairman and chief executive officer Dr Chang Ahn said that the company was pleased that Teva recognises the commercial potential of this discovery.

“These agreements also provide Rexahn with another secure revenue stream that further supports our push to bring our three very promising Phase II compounds,
Archexin, Serdaxin and Zoraxel, to market,” Ahn said.

Teva may also make an additional equity investment in Rexahn within the next 12 months.