Myovant, Accord Healthcare Ink Relugolix Distribution Pact For Europe In Prostate Cancer

Myovant Sciences Ltd MYOV and Accord Healthcare Ltd have entered into an exclusive license agreement to commercialize Orgovyx (relugolix) for advanced hormone-sensitive prostate cancer in the European Economic Area, the U.K., Switzerland, and Turkey.
Accord has the right to the first negotiation if Myovant decides to enter into licensing arrangements in countries in the Middle East, Africa, and India.
Under the agreement terms, Myovant will receive an upfront payment of $50 million and is eligible to receive commercial launch, sales-based, and other milestones totaling up to $90.5 million.
Related: Here's Why This Analyst Is On Sidelines Despite European Approval Of Myovant's Relugolix For Prostate Cancer.
In addition, Myovant is eligible to receive tiered royalties from the high-teens to mid-twenties on net sales.
Myovant will continue to lead the global development of relugolix and provide initial product supply to Accord.
Accord will be responsible for certain local clinical development and all commercialization for its territories and has the option to manufacture relugolix in the future.
Price Action: MYOV shares traded 0.92% lower at $8.60 during premarket trading on Monday's last check.