As per the agreement, the companies aim to develop and commercialize at least three new vaccines with MTPC who will provide funding for all research and development costs.
Medicago will grant licensing rights of Rotavirus Like Particle (RLP) vaccine target to MTPC, in lieu of which it will receive up to a total of C$33m ($32.99m) upfront and milestone payments as well as royalties for each product to be developed under this master agreement.
Medicago will also receive an upfront payment of C$3m ($2.99m) to begin the initial research on rotavirus, followed by work on an RLP vaccine target, while additional targets under this master agreement are to be selected by the parties at a later date.
Medicago president and CEO Andy Sheldon said the collaboration demonstrates the value that pharmaceutical companies place on new technology production platforms that have the potential to improve efficacy, cost and speed of production.
"This collaboration leverages the significant strengths of our two companies towards a shared vision that can positively impact vaccine development and benefit patients worldwide," Sheldon said.
Medicago vice president of Business Development Frederic Ors said, "This collaboration is consistent with our business strategy to develop new vaccine targets with significant market potential along with a knowledgeable partner that is committed to supporting rapid development."
MTPC president and chief executive officer Michihiro Tsuchiya said the company is excited to be form this strategic alliance with Medicago using their plant-based VLP technologies.
"Our research collaboration aims to create new and better vaccines that will improve the health of people around the world," said Tsuchiya said.