Vertex And TreeFrog Therapeutics Announce Licensing Agreement And Collaboration To Optimize Production Of Vertex's Cell Therapies For Type 1 Diabetes

• Vertex obtains an exclusive license to TreeFrog’s C-Stem manufacturing technology in type 1 diabetes
• TreeFrog and Vertex to collaborate on scale-up of fully differentiated, insulin-producing pancreatic islet cells

Vertex Pharmaceuticals Incorporated and TreeFrog Therapeutics today announced that Vertex has obtained an exclusive license to TreeFrog’s proprietary cell manufacturing technology, C-Stem, to optimize production of Vertex’s cell therapies for type 1 diabetes (T1D). TreeFrog and Vertex will collaborate to scale-up TreeFrog’s process to produce and amplify cells for Vertex’s T1D therapies.

TreeFrog’s proprietary technology platform, C-Stem, is designed to mimic the natural microenvironment, allowing cells to grow exponentially in 3D. The technology will enhance Vertex’s ability to generate large amounts of fully differentiated cells for its portfolio of T1D cell therapies.

“Our goal is to transform the treatment of T1D, and our stem cell-derived, fully differentiated islet cell VX-880 Ph 1/2 program has demonstrated this potential,” said Morrey Atkinson Ph.D., Executive Vice President, Chief Technical Operations Officer, Head of Biopharmaceutical Sciences and Manufacturing Operations, at Vertex. “We’re excited to explore TreeFrog’s C-Stem to scale up stem cell production and deliver for the large number of people living with T1D.”

“We are delighted to partner with Vertex Pharmaceuticals, the clear leader in cell therapy for T1D. This is a fantastic opportunity to apply and further develop our C-Stem technology for a first-in-class cell therapy treatment which could meet a huge unmet need,” said Frédéric Desdouits, Ph.D., CEO of TreeFrog Therapeutics. “This collaboration with Vertex advances our business strategy of helping bring best-in-class cell therapies to millions of people — both through our own therapeutic programs, and with best-in-class partners like Vertex. We look forward to combining TreeFrog’s extensive experience in cell therapy production and biology with Vertex’s renowned expertise in T1D and cell therapy to bring these transformative therapies to patients.”

About the Transaction
Under the agreement, TreeFrog will receive a $25M upfront payment, an equity investment from Vertex and up to $215M in milestones paid in connection with the development of a scaled-up process for fully differentiated islet cells. TreeFrog is also eligible to receive an additional $540M in clinical, regulatory and commercial milestones on up to two future products and tiered single digit royalties. Vertex will fund all research and development costs related to the collaboration. Vertex will be responsible for all development and commercialization of its cell therapies.