In July 2005, Adherex in-licensed eniluracil from GlaxoSmithKline (GSK). Under the terms of the Development and License Agreement, Adherex received an exclusive license for eniluracil for all indications, and GSK retained options to buy back the compound at various points in time during its development in return for milestone payments and sales royalties to Adherex, the size of which were dependent upon if and when GSK actually exercised one of its options. GSK made a concurrent equity investment of US$3 million to assist in its further development.
In March 2007, Adherex purchased all of GSK's remaining options under the agreement for a US$1 million upfront fee. Adherex now has full control over the development of eniluracil and is required to pay GSK the same development and sales milestone payments and sales royalties as previously agreed, but GSK's options to buy back the product no longer remain.
Oregon Health & Science University
In November 2002, Adherex acquired an exclusive license agreement with Oregon Health & Science University through its acquisition of Oxiquant, Inc., which had entered into the licensing agreement with OHSU in September 2002. Under the terms of the agreement, Adherex was granted exclusive worldwide rights directed to intellectual property surrounding work done by Dr. Edward Neuwelt with respect to thiol-based compounds (including STS and NAC) and their use in oncology. In exchange, Adherex issued common stock to OHSU and agreed to pay certain development milestones and sales royalties.