Under the terms of the agreement, Arius will receive an upfront licensing fee and may receive milestone payments based on progress through clinical development as well as royalties on net sales of any products resulting from the collaboration. Genentech will assume the responsibility and costs of development and commercialization. Financial terms were not disclosed.
The agreement represents the first anti-cancer antibody developed from Arius’s FunctionFirst platform to be out-licensed. Antibodies discovered through the company’s proprietary technology have demonstrated anti-tumor activity in animal models of a number of human cancers and have been shown to recognize important cancer targets.
Arius is researching treatments for the most common cancers and those with significant unmet medical need. At present the company reports that there are eight antibodies currently available for treating cancer with a worldwide market value close to $6.3 billion in 2005.
“Out-licensing one of our lead programs to Genentech achieves a number of key objectives for the company and represents a significant milestone under the Arius business model,” said Dr David Young, president of Arius. “Genentech has demonstrated extensive scientific and commercialization expertise with antibodies for cancer and Arius is optimistic that, down the road, patients will have more and better treatment options arising from this collaboration.”