NewLink Genetics, Genentech Ink $1 Billion Cancer Drug Deal
Biopharmaceutical company NewLink Genetics announced that it has signed into an exclusive global license agreement with Roche’s Genentech to develop NewLink’s IDO pathway inhibitor NLG919 for cancer.
As part of the agreement, Genentech will pay NewLink $150 million upfront, with NewLink also being eligible to receive $1 billion in milestone payments and royalties from sales of several Genentech products. The company will retain the option for the rights to co-promote NLG919 in the U.S. In turn Genentech will assume responsibility of future R&D, manufacturing, and marketing costs.
In addition, the companies established a research collaboration for the discovery of next-generation IDO/TDO compounds, for which Genentech will provide research grants. NewLink will proceed with its development program for NLG919 in combination with the company’s novel HyperAcute vaccine platform.
The IDO pathway regulates immune response through its suppression of T-cell activation that allows tumors to hide from the immune system and to survive. The pathway has been found to play a role in multiple cancers, both in its ability to protect tumor cells from T-cells and through promoting tolerance to tumor associated antigens (TAAs). Because the IDO pathway has been implicated in the proliferation of malignant cells, it has been the target of several inhibitors being developed by NewLink, including NLG919.
Dr. Charles Link, Chairman and CEO of NewLink, said, “This alliance enables us to accelerate and expand development of NLG919 while we continue to advance our other promising clinical and preclinical development programs.”
James Sabry, SVP and Global Head of Genentech Partnering, said, “We are intrigued by the biology of the IDO and TDO compounds and are very interested in the potential to combine them with Genentech's portfolio of novel therapies. We are delighted to have initiated this significant partnership with NewLink. We hope this collaboration will lead to new therapies for people with cancer.”
NewLink’s share climbed more than 90 percent since last week. The company’s shares rose 30 percent following the news of the collaboration, reports Reuters.