Agios, Celgene agree to establish metabolic immuno-oncology alliance

The partnership intends to discover, develop and commercialize novel therapies based on Agios’ cellular metabolism research platform.

Celgene will pay Agios $200m upfront for an initial four-year research term, and holds an option to extend the partnership for a further two years for an undisclosed amount.

Agios will lead exploratory research, drug discovery and early development efforts.

The companies have also modified several rights from their 2010 collaboration. As per the modified terms, Agios gains global development and commercial rights to an experimental treatment, known as AG-120, which is being studied as a potential therapy for acute myeloid leukemia.

In addition, two cancer metabolism programs from the 2010 alliance will move ahead under a new research collaboration structure.

The companies will enter into a global co-development and co-commercialization agreement under which costs and profits will be shared equally.

For each program, Agios is eligible for up to $169m in clinical and regulatory milestone payments from Celgene.

Celgene will have a one-time opportunity to select a metabolic immuno-oncology program under which costs and profits will be shared 65% by Celgene and 35% by Agios.

If Celgene goes ahead, Agios will be eligible for clinical and development milestones of up to $209m.

If the collaboration generates any inflammation or autoimmune programs, Celgene has the option to enter into an exclusive worldwide license agreement and lead worldwide development and commercialization.

For any such licensed products, Celgene agreed to pay Agios up to $386m in clinical, regulatory and commercial milestone payments, as well as double-digit tiered royalties on any net sales.