Baxalta And Symphogen Announce Broad Strategic Immuno-oncology Collaboration

(RTTNews) - Baxalta Inc. (BXLT) and Symphogen, a private biopharmaceutical company developing recombinant antibodies and antibody mixtures, announced a broad strategic immuno-oncology collaboration.

As per the terms of the agreement, Baxalta and Symphogen will advance novel therapeutics against six checkpoint targets, with the first program to enter clinical studies in 2017.

On a product-by-product basis, following successful completion of Phase 1 clinical trials, Baxalta will have exclusive option rights to complete late-stage development and worldwide commercialization. Symphogen will receive an upfront payment of $175 million or 160 million euros from Baxalta in exchange for the exclusive option rights for six checkpoint therapies. Symphogen will be responsible for performing R&D through Phase 1 clinical trials at its own expense. The agreement holds a total potential value up to 1.4 billion euros or $1.6 billion in option fees and milestones over the long-term, in addition to royalties on worldwide sales. Additional terms, including therapeutic targets, were not disclosed.