In October 2018, the companies first announced their collaboration for the discovery, development and commercialisation of advanced targeted immuno-oncology treatments for cancer.
As part of the expanded multi-year collaboration, Tango will continue to leverage its CRISPR-enabled functional genomics target discovery platform for the detection of new immune evasion targets.
The companies will expand the number of targets covered under the deal from five to 15. Gilead will be provided with options to secure worldwide rights for programmes focused on these targets over the next seven years.
This deal gives an option to Gilead with the right to pay extension fees for Tango in order to lead activities running through early clinical development and for this, it will be able to hold its option rights.
Tango, on the other hand, will have the option to not just co-develop but also co-promote these lead products for up to five programmes in the US.
The latest deal, however, does not cover Tango’s lead programmes, including the one that is anticipated to be in investigational new drug (IND) application-enabling studies in 2021.
Tango also holds the rights to determine targets outside the immune evasion area as it continues to develop its own pipeline.
Gilead Sciences research executive vice president Dr William Lee said: “We are looking forward to working with Tango to run additional cancer context dependent screens to identify a broader set of targets based on our immuno-oncology strategy.”
As per terms of the latest deal, Tango will secure $125m upfront payment and $20m equity investment from Gilead.
Gilead can opt-in for up to 15 programmes over the seven-year collaboration. It will pay up to $410m for each programme, with payments linked to opting in, extension and milestones.
Under the deal, Tango is eligible to secure up to low double-digit tiered royalties based on net sales.
Tango Therapeutics president and CEO Barbara Weber said: “Gilead has been a valuable strategic partner and strong scientific collaborator and we look forward to advancing programmes beyond target validation under this expanded collaboration.”
In July, Gilead Sciences secured conditional marketing authorisation from the European Commission for its Veklury (remdesivir) to treat SARS-CoV-2 infection, which is responsible for the Covid-19 disease.