Basel, Switzerland-based Roche and Chiasma, a privately held biopharmaceutical company, have entered into an agreement to develop and commercialize Chiasma's proprietary product Octreolin, initially for acromegaly and subsequently for neuroendocrine tumors.

Octreolin is an investigational oral form of the peptide octreotide, a somatostatin analog that is commercially available only by injection.  Octreolin is currently in a pivotal phase III clinical trial for acromegaly.

Roche received a worldwide exclusive license to Octreolin, and will assume responsibility for the commercialization of Octreolin. Genentech will market the product in the U.S. after FDA approval. Chiasma will continue development through completion of the pivotal phase III clinical trial for acromegaly. The arrangement includes an upfront payment to Chiasma of $65 million, future considerations of up to $530 million in development and commercial milestones, as well as tiered, double-digit royalties on Octreolin net sales.

"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, M.D., global head of product development and CMO, Roche.

Evercore Partners served as Chiasma's financial advisor on the transaction, and Latham & Watkins served as its legal counsel.