SiliconBeat

Telik, the unprofitable Palo Alto developer of cancer and diabetes drugs that has built up an accumulated loss of $479.5 million, got some good news Friday, even if it is off a bit in the future. UBS, the financial firm, has agreed to buy Telik’s auction rate securities, which Telik has not had access to since the auctions for them froze up earlier this year. But Telik will have to wait until June 30, 2010, for the offer to kick in, and then it will have a two-year period during which to decide to sell them.

UBS has the “right to purchase or sell” Telik’s auction-rate securities until July 2, 2012, so long as Telik receives at least the value of its original investment. There is also no guarantee that “UBS will have adequate financial resources to fulfill its purchase obligations.”

UBS has also offered to make “no net cost” loans to Telik up to the value of the securities in the meantime.