Under the terms of the new agreement, Nuvelo will receive a $2 million upfront payment from Kirin for NU206 with Nuvelo leading worldwide development, manufacturing and commercialization. All expenses and operating profits will be shared in a 60:40 ratio (Nuvelo:Kirin) while the two companies are both actively collaborating under the agreement.
Scientists from Nuvelo and Kirin worked together to identify and characterize NU206 as part of a longstanding collaboration focused on the discovery of novel, secreted proteins. NU206 is the first compound to move into investigational new drug (IND)-enabling studies from this program.
Research to date indicates that NU206 acts as a specific and potent stimulator of alimentary epithelial cells, and therefore could have potential clinical utility in both inflammatory bowel disease and in chemotherapy or radiation therapy induced mucositis.
“We are very pleased with the productive outcome of the collaboration with Nuvelo,” said Toshifumi Mikayama, vice president of planning for Kirin. “Nuvelo’s novel gene sequences and target identification capabilities coupled with Kirin’s proprietary technologies have yielded a promising early-stage product candidate in NU206.”