Agios, Celgene Cancer Metabolism Agreement Extended
Agios is extending the period of exclusivity in its long-standing cancer metabolism collaboration with Celgene by one year. Per this extension, Celgene will maintain its exclusive option to all drug candidates emerging from Agios’ cancer metabolism research platform through April 2015. Agios will also receive a $20 million payment, and Celgene can extend this collaboration period one year further for an additional payment.
The original agreement was made back in April 2010, under which Agios received a $130 million upfront payment including an equity investment that comprised its Series B financing round. Per that agreement, Agios leads research and early development efforts through Phase I, while Celgene has an exclusive option to license candidates either upon IND acceptance or at the end of Phase I to further develop and commercialize the drugs Agios started developing. Celgene would also lead and fund the global development and commercialization of some of these drugs. Agios is keeping development and commercialization rights for certain drugs in the U.S. and has the right to receive up to $120 million in milestone-based payments as well as royalties on any sales on all programs.
This isn't the first extension made in this collaboration: In October of 2011, Agios Pharmaceuticals and Celgene decided ahead of schedule to extend the initial period of exclusivity of the companies’ April 2010 agreement from three to four years. Agios received a $20 million payment as a result of this extension as well.