Lantheus Medical Imaging and GE Healthcare have signed a proposed deal to continue phase III of the development and global commercialization of the PET myocardial perfusion imaging radiotracer flurpiridaz F 18.

Flurpiridaz F 18 was developed to better evaluate patients with known or suspected coronary artery disease. In the first phase III study, the tracer was shown to improve CAD detection and reduce radiation exposure compared to standard SPECT imaging.

In subgroup analyses, the tracer was shown to work well in women, obese patients and patients with multi-vessel disease. It has a 110 minute half-life and can be used in combination with stress testing unlike other PET tracers for MPI.

As part of the deal, GE would fund the second phase III flurpiridaz clinical study, regulatory clearances and the global launch and commercialization of the agent.

Lantheus would contribute to the development and commercialization process through a joint steering committee, as well as maintain the option to co-promote the tracer in the U.S.

"The collaboration would enable us to participate in the long-term economic success of flurpiridaz F 18," Mary Anne Heino, president and CEO of Lantheus, said in a statement. "LMI will also continue to advance our other pipeline assets and pursue additional near-term business development opportunities to drive growth.”

Lantheus would initially receive an upfront cash payment of $5 million. If the clinical study is successful, up to $60 million in regulatory sales milestones payments would be provided, as well as tiered double-digit royalties on U.S. sales and mid-single-digit royalties on sales in other countries.

The companies plan to enter into a definitive agreement in the second quarter of 2017, but there is no guarantee the deal will happen on these terms or at all.