Under the terms of the multi-year agreement, Genentech makes an upfront payment to CGI of $25 million. Genentech obtains an exclusive license to develop and market small molecules based on the target throughout the world, except in the states of the European Union.
In the EU, CGI retains the right to develop and commercialize potential molecules arising from the collaboration. The agreement includes opportunities for further expansion of the collaboration, with the potential for CGI to receive milestone and option payments in excess of $500 million upon the successful completion of certain development and regulatory milestones.
“The combination of Genentech's expertise in biology and our understanding of the chemistry underlying this target, we believe, provides this program with the potential to bring new therapies to market,” said Mark Velleca, CGI's CSO.