Boston Strategics in the US and Japanese company NanoCarrier each paid Eisai less than 100 million yen ($952,700) for the rights to continue development of separate cancer drugs that Eisai had put aside after the first phase of clinical trials.

Boston Strategics is developing a compound for myeloid leukemia and will be paid a fee contingent upon success.

NanoCarrier is using proprietary technologies to proceed with development of another cancer compound that Eisai has the rights to buy back.

In both cases, Eisai has first-refusal rights to buy back the cancer drugs if further development suggests that they are marketable. It may pay the bioventures several times what they paid Eisai for the original development rights.

Eisai is not alone in using this strategy to expand its lineup. Astellas Pharma has licensed a total of six compounds to four drug R&D companies in the US since 2011, with rights to buy back development and marketing rights.

(News Courtesy: www.asia.nikkei.com)