A NORTH-EAST university has signed a £5m partnership with a pharmaceutical company to develop new cancer drugs.

During the five year partnership Astex Pharmaceuticals will provide £1m every year to a team of scientists at Newcastle University.

The cash will be used by the scientists to develop new cancer drugs and identify 'biomarkers' which can lead to new therapies.

Newcastle University already works closely with Cancer Research Technology Limited (CRT), a company run by Cancer Research UK.

The three partners will work with researchers at the Cancer Research UK Drug Discovery Program at the Northern Institute for Cancer Research at Newcastle University.

Harren Jhoti, president of Astex Pharmaceuticals, said: "We are delighted to enter into this broad strategic drug discovery alliance with one of Cancer Research UK's leading drug discovery centres."

Mr Jhoti said the new agreement builds on a collaboration between Astex, Newcastle and CRT on a potential cancer drug known as FGFr which is about to go into clinical trials.

Mr Jhoti said: "We look forward to discovering more new potential therapies for cancer."

Astex will retain an option to an exclusive worldwide license to pharmaceutical products. CRT and Newcastle will be eligible to receive royalties on sales of products.

Professor Herbie Newell, co-director of the Cancer Research UK Drug Discovery Program at Newcastle University, said: "This exciting alliance represents an innovative route to the development of more effective cancer drugs."

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