Serono will pay a license fee of $5 million for the two the antibodies, NI-0401 and NI-0501, which are believed to have therapeutic potential in a broad range of autoimmune diseases.
NI-0401 is active against autoimmune diseases, including insulin-dependent diabetes, Crohn’s disease, multiple sclerosis and rheumatoid arthritis. The second antibody, NI-0501, targets interferon-gamma, which is over expressed in autoimmune diseases such as systemic lupus erythematosus, Crohn’s disease and several forms of vasculitis. Both antibodies are currently in preclinical development and NI-0401 is expected to enter clinical trials later this year.
Under the terms of the agreement, NovImmune is responsible for the development of the two products until the completion of phase II clinical trials, after which Serono will take over further development. After the initial payment of $5 million Serono will make a $6.12 million equity investment in NovImmune and lend the company up to $6.12 million.
Based on the successful development and initial registration of the products, NovImmune may receive up to $105 million in future milestone payments. In addition, NovImmune may receive further milestone payments based on approval of the products for additional indications, and will also be entitled to receive undisclosed royalties based on eventual net sales of the products.