US biotechnology group Genentech has agreed with Hanmi Pharmaceutical to buy the exclusive global rights to the South Korean company’s experimental cancer drug HM95573. The California-headquartered firm, part of Swiss drugmaker Roche, will make an initial upfront payment of $80 million for the rights – excluding South Korea – to develop and commercialize the pan-RAF inhibitor, which is currently in Phase 1 clinical development.

Hanmi is also eligible to receive milestone payments of up to $830 million as well as tiered double-digit royalties on sales of certain products resulting from the license agreement. The transaction is expected to close during the fourth quarter of 2016, subject to the usual closing and antitrust conditions. Senior vice president and global head of Genentech Partnering, James Sabry, said the company is eager to leverage Hanmi’s scientific insights in developing novel therapies that target the MAPK pathway.

The MAPK pathway has been shown to be important in some cancers and RAF kinases – especially B-RAF and C-RAF – are known to be associated with various tumors. Companies, including Roche, are investigating ways to target MAPK signalling. In addition to oncology, the Seoul-headquartered company’s key R&D target areas are in diabetes and obesity, auto-immune diseases and fixed-dose combination programs.