Firm could earn over $700 million in milestone-based fees and royalties.
Celgene will make a $40 million upfront payment to Array BioPharma as part of a partnership focused on cancer and inflammation. Array stands to earn over $700 million more based on various milestones.
Array will be responsible for all discovery and clinical development through Phase I or Phase IIa. Celgene has the option to select drugs developed under the collaboration that are directed to two of four mutually selected discovery targets. Celgene will then receive exclusive worldwide rights to those drugs, except for Array’s limited co-promotional rights in the U.S.
Array also entitled to receive for each drug potential milestone payments of approximately $200 million if certain discovery, development, and regulatory milestones are achieved. An additional $300 million will be paid if certain commercial milestones are reached as well as royalties on net sales. Array will retain all rights to the other programs.