Under the partnership, the companies will jointly select two preclinical drug candidates, one in inflammation and the other in oncology.
Two preclinical drug candidates will be targeted, one in inflammation and the other in oncology.
Takeda will have the exclusive right to advance each candidate into clinical trials.
Gencia will receive upfront payments and preclinical milestones totaling $500m. The company will also secure royalties on any sales of commercialized products.
Gencia president and CEO Allen Cunningham said: "Takeda’s strength in drug discovery and development, and in particular their commitment to oncology and inflammation drug research, provides Gencia with the opportunity to advance our mitochondrial targeting platform and MAGR compounds into the clinic, and ultimately to patients in need of these therapies."
Gencia said glucocorticoid drugs can be effective in hematological and inflammatory diseases, however serious side effects can limit their use.
The company’s MAGR agonists have indicated activity in several steroid-sensitive and steroid-resistant pharmacology models.
Under the deal, Gencia and Takeda will evaluate possible therapeutic uses of MAGRs and the potential for their safe chronic use.
Takeda general manager, head of pharmaceutical research division Tetsuyuki Maruyama said: "We are delighted to partner with Gencia to create new medicines designed to be chemically and functionally different from steroids, but that may still be effective in treating a broad spectrum of diseases for which chronic steroids are currently prescribed.
"We expect to change the paradigm for how patients are treated by potentially avoiding the issues that result from long-term steroid use."
Privately owned Gencia is engaged in development of therapeutics based on mitochondrial targeting technology.
Earlier this year, Takeda Pharmaceutical partnered with the National Cancer Center to discover and develop new anti-cancer agents originated in Japan.
Image: Gencia and Takeda Pharmaceutical will discover and develop a new class of small molecule as possible drugs to treat hematological and inflammatory diseases. Photo: courtesy of vitasamb2001/FreeDigitalPhotos.net.