February 24, 2013, Updated February 21, 2013

Israeli biotech startup company Chiasma logged a high-profile coup following the signing of a commercialization agreement with Swiss pharmaceutical giant Roche for up to $600 million. The deal will see Roche develop and commercialize Chiasma’s proprietary product Octreolin, initially for acromegaly and subsequently for neuroendocrine tumors.

Chiasma has been advancing Octreolin, an oral form of the peptide octreotide, which is currently only available commercially by injection. Octreolin is in a Phase III clinical trial for acromegaly. Roche received a worldwide exclusive license to Octreolin.

“We are especially pleased to have entered into this agreement with Roche, an ideal collaboration partner that has the right development and commercial resources in the areas of endocrinology and oncology to support Octreolin,” said Fredric D. Price, Chiasma’s Chairman and Chief Executive Officer.

Roche made an upfront payment of $65 million to Chiasma along with milestone payments and royalties of up to $530 million.

If successfully developed and commercialized, Octreolin will allow patients to avoid painful injections.

“If approved, Octreolin would be an important alternative for patients with acromegaly, a disorder that develops when a person’s pituitary gland produces too much growth hormone. Octreolin is an investigational oral regimen that avoids the painful injections of current treatment options,” said Hal Barron, Roche Global Head of Product Development and Chief Medical Officer.

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