Endo buys rights to bladder cancer drug

NEW YORK - Endo Pharmaceuticals Holdings Inc. said Friday it bought the U.S. rights to an experimental bladder cancer treatment from Bioniche Life Sciences Inc. for up to $130 million.

Endo licensed the rights to develop and market Urocidin in the U.S. from Bioniche, which is based in Belleville, Ontario. The Chadds Ford, Pa., company agreed to pay $20 million upfront, and as much as $110 million more if the drug advances through clinical testing, is approved, and reaches sales milestones.

Endo plans to launch a bladder cancer drug called Valstar in August, and said Urocidin will strengthen that franchise. Bioniche will manufacture Urocidin for Endo, and receive a transfer price.

Urocidin is in late-stage clinical testing as a treatment for non-muscle-invasive bladder cancer, or bladder cancer that has not yet spread deep into the muscle layer. The companies estimated that about 70,000 patients are diagnosed with bladder cancer, and about 70 percent have the non-muscle-invasive variety.

The cancer is usually treated with surgery and chemotherapy. The current trial involves patients whose previous treatment has been unsuccessful, and Bioniche says it is preparing a second trial of Urocidin as a primary treatment.

The drug has received fast-track status from the Food and Drug Administration, meaning the agency has agreed to render a faster-than-average ruling on its application. The FDA has also agreed to approve the drug if it meets its goals in the second trial.

In morning trading, Endo shares slid 20 cents to $17.14.

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