United States-based OncoSec Medical Incorporated (NASDAQ:ONCS) has signed a contract with United States-based Sirtex Medical Inc, it was reported on Tuesday.

The contract will provide Sirtex with an option to non-exclusively co-promote the Oncosec's lead product candidate, TAVO (tavokinogene telseplasmid) in anti-PD-1 checkpoint refractory metastatic melanoma in the United States. OncoSec aims to capitalise on both the extensive experience Sirtex has in marketing drug/device combination products and its established oncology sales force in the United States.

According to the terms of the contract, Sirtex will pay OncoSec USD5m for a non-exclusive option to co-promote TAVO along with KEYTRUDA in patients with anti-PD-1 checkpoint refractory metastatic melanoma in the United States. If exercised, this option would require Sirtex to pay an additional USD20m in cash and buy USD5m of Oncosec common stock at market price. The option has to be exercised by Sirtex within 90 days of OncoSec's filing a Biologics License Application (BLA) with the US FDA and carries a co-promote term of eight years. OncoSec has the right to grant others co-promotion rights and the right to buy back the co-promotion rights for a certain amount determined by the remaining number of years left in the term, but not to exceed USD45m. Other terms and conditions apply.