Astellas, Cullgen Team Up To Discover Innovative Targeted Protein Degraders

(RTTNews) - Biopharmaceutical companies Astellas Pharma Inc. (ALPMY) and Cullgen Inc, announced on Thursday a research collaboration and exclusive option agreement to discover multiple innovative protein degraders.

Under the agreement terms, both the companies aim to develop multiple targeted protein degraders by combining Cullgen's proprietary uSMITE, a targeted protein degradation platform and Astellas' drug discovery capabilities together.

The research work to identify clinical development candidates will be jointly conducted by Astellas and Cullgen.

Astellas will have the option of licensing the rights for clinical development and commercialization of the protein degrader compounds identified during the research activities. On the other hand, Cullgen will have the option to participate equally for costs, profits, losses and to co-promote partnered products in the U.S during the initial stages.

Astellas will also provide Cullgen an upfront payment of $35 million. It will also give an additional $85 million to Cullgen when it exercises the license option.

The total compensation to Cullgen can exceed $1.9 billion if Astellas exercises all its license options and all milestones for all programs achieved. Cullgen can also receive royalty payments from Astellas on any potential commercial sales.

On Wednesday, shares of Astellas closed at $16.33 down 0.55% or $0.09.