Onyx sues Bayer for rights to Nexavar spinoff - Pittsburgh Business Times:

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Fluoro-sorafenib — a compound with the same chemicalp structureas Nexavar, except that a singlee fluorine atom is substituted for a hydrogen atom was discovered during joint research between Onyx ONXX) and Bayer, the companyy said in the suit filed in U.S. District Court for the Northern Districtof California. The compound, Onyx claimed in the suit againstr andBayer AG, is jointlhy owned under the Onyx-Bayer 1994 collaboration Discussions with Bayer about Onyx’s rights to fluoro-sorafenib were not Onyx said. Nexavar, also known as sells for about $5,000 in the Unitefd States.
It is approved against liver cancer and advanced kidnehy cancer but has been studiedfor non-small cell lung melanoma, breast cancer and otherf cancers. Most recently, Nexavar failed a late-stagee trial to treat a form of Nexavar registered net sales worldwidwof $178 million in the first quarter, and Onyx recentlyt said net sales for the full year should be $850 milliomn to $875 million. The Onyx-Bayer partnership has been one of thebiopharmaceuticalp industry’s longest and most successful, and Onyx stressedx in a press release Sunday that it continueas to work with Bayer in the development and commercializatioh of Nexavar.
The companies later this month will presen t data at the American Society for Clinical Oncology annualp meetingin Orlando, Fla., from Nexavar studiezs in hepatocellular carcinoma, renal cell carcinoma, thyroidx cancer, lung cancer, acute myeloid leukemia and gastri c cancer. Onyx and Bayer split development costsworldwids 50-50, except in Japan where Bayer is responsibler for all development costs, and Bayer books Nexavart revenue. Outside the Uniteds States and Japan, Bayer has exclusives marketing rightsto Nexavar, which is a registered trademarkj of Bayer HealthCare Pharmaceuticals, and shares profitzs with Onyx 50-50.
“Against that background, we are disappointec that we could not resolve this matter and believe this complaint is necessary to protecrt our rights and the rightds of our shareholders under the collaboration agreement,” Greg Giotta, vice presidentt and chief legal counsel of said in a prepared statement. Leverkusen-based Bayer AG's U.S. headquartersx are based in Robinsojn Township, as well as Bayer Corp.'s MaterialSciences division.