Biotechnology company Biogen Idec Inc said it will pay Genentech Inc US$31.5 million to jointly develop its next-generation blood cancer treatment Rituxan.
The drug, GA101, is being tested in early clinical trials against non-Hodgkin's lymphoma and chronic lymphocytic leukemia, Biogen said in a statement.
Under the terms of the election, Biogen and Genentech will share certain development costs. Like Rituxan, the experimental compound targets a type of immune cell, called CD20 that plays a role in non-Hodgkin's lymphoma.
Rituxan generated US$2.3 billion in US sales last year and is also approved to treat rheumatoid arthritis.