Celgene Corporation (NASDAQ:CELG) is deepening its ties with biotech company Agios Pharmaceuticals Inc (NASDAQ:AGIO) with a 50-50 collaboration on another preclinical cancer candidate.
Celgene will give $10 million up front and promises up to $70 million more to get a share of AG-881. AG-881 is Agios’ therapy that aims to target cancer metabolism with the goal of killing tumours. The therapy has successfully passed the blood brain barrier in preclinical trials and has successfully reached to cancers showing certain mutations. With the partnership with Celgene in place, Agios can expect to get the therapy into clinical trials next quarter.
AG-881 is a molecule that can fully penetrate the blood brain barriers and inhibit isocitratedehydrogenase-1 (DH1) and IDH2 mutation in cancer models. The testing is only in the preclinical stage.
Under the collaboration, the two companies will share the development costs equally, and the profits will also be split down the middle. Celgene will handle the global sales while Agios will handle the sales in America.
This is the third collaboration between the two companies. The relationship began with the $120 million deal for cancer treatment AG221 in 2010. The next deal was on AG-120, which also targeted tumours with IDH mutation. Under the deal, Agios will get up to $240 million in milestone payment.
Agios’ CEO David Schenkein stated that AG-881 adds to the company’s portfolio on IDH inhibitors as it has a unique profile. He further stated that the therapy has the potential to support the company’s efforts to develop treatment options to patients with giloma. The drug could also be the second generation molecule for both AG-120 and AG-221.
Agios Pharmaceuticals Inc (NASDAQ:AGIO) has been on the rise since raising an IPO of $106 million during the early days of biotech boom. Celgene meanwhile is a drug company with many drugs under its portfolio. Celgene has repeatedly shown faith in Agios’ technology and the leadership of Schenkein.
