Clovis Oncology and Avila Therapeutics have signed an agreement to develop and commercialise Avila’s epidermal growth factor receptor (EGFR) to treat non-small cell lung cancer (NSCLC).

Under the agreement, the partners will collaborate on the pre-clinical development of the drug candidate.

The candidate, T790M, has the potential to treat first- and second-line NSCLC patients with EGFR mutations.

Clovis Oncology will be responsible for development and commercialisation including companion diagnostic to identify patients with clinically-arising resistance mutations of the EGFR.

Avila will extend research support and receive an upfront fee along with development, regulatory and sales-based milestone payments, with a potential value of $209m.

Avila will also receive tiered royalties on drug sales and will share selected sublicense income.

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By GlobalData

An estimated 1.35 million new lung cancer cases are reported annually with NSCLC accounting for 85%.