Entry into a Material Definitive Agreement
ITEM 1.01 Entry into a Material Definitive Agreement.
On December 23, 2008, as amended on February 5, 2010, Synta Pharmaceuticals Corp. ("Synta") entered into a Collaboration and License Agreement (the "Agreement") with F. Hoffmann-La Roche Ltd, a Swiss corporation, and its affiliate, Hoffman-La Roche Inc., a New Jersey corporation (together, "Roche"). Under the Agreement, Synta and Roche agreed to collaborate on the discovery, development and commercialization of compounds targeting calcium release-activated calcium modulator channels, initially directed to the treatment of inflammatory diseases.
On February 3, 2011, Synta and Roche entered into a second amendment to the Agreement with an effective date of January 1, 2011 (the "Amendment") which extends the license for Roche to continue performing research on certain specified compounds until June 30, 2011. The initial research term and research license ended pursuant to the terms of the Agreement on December 31, 2010. In addition, the Amendment also provides for the return to Synta of certain compounds that had been licensed to Roche during the initial research term.
Synta intends to file the Amendment as an exhibit to its Quarterly Report on Form 10-Q for the quarter ending March 31, 2011.
This is the reason SNTA was up over 15% at one point this morning. This is incrementally positive news, as previously the agreement was forecast by management to simply expire at year-end 2010. Based on the description that Roche will be conducting the research, it seems unlikely that SNTA will receive much incremental funding from this extension. But there is the chance Roche could still option a compound, which seemed remote previously.