Octreolin, which is currently undergoing a pivotal Phase III clinical trial for acromegaly, is an oral form of the peptide octreotide, a somatostatin analogue available only by injection.
The investigational oral regimen is being developed to avoid the painful injections of existing treatment options.
Chiasma chairman and CEO Fredric Price said; "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."
The deal grants Roche an exclusive worldwide license to Octreolin, and the company will look after all commercialisation activities for the product.
Upon the receiving US FDA approval, the product will be marketed by Genentech in the US.
Chiasma, which will continue development througout the Phase III clinical trial for acromegaly, will receive an upfront payment of $65m and is eligible for future considerations of approximately $530m in development and commercial milestones, in addition to sales-based royalties.
Roche product development global head and chief medical officer Dr Hal Barron said; "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."
Chiasma’s financial advisor for the transaction was Evercore Partners, while legal counsel was Latham & Watkins.
Image: High magnification micrograph of a small intestine neuroendocrine tumour. H&E stain. Photo: Nephron.