Incyte Corporation and MacroGenics, Inc. entered into a global collaboration and license agreement for MacroGenics’ MGA012.
MGA012 is a monoclonal antibody that inhibits programmed cell death protein 1 that shows potential in cancer treatment.
Incyte, which is headquartered near Wilmington, has obtained exclusive worldwide rights for the development and commercialization of MGA012 in all indications, while MacroGenics retains the right to develop its pipeline assets in combination with MGA012.
The agreement calls for Incyte to pay as much as $900 million to MacroGenic, depending on the success of the drug in trials and the marketplace.
MacroGenics is a clinical stage company based in Rockville, MD, a Washington, D.C. suburb.
“Anti-PD-1 therapy is becoming a mainstay of cancer treatment across multiple tumor types, and we believe the addition of MGA012 to our clinical pipeline is important to fulfilling our long-term development strategy in immuno-oncology. This collaboration with MacroGenics will allow us to rapidly explore the potential clinical benefit of developing MGA012 as a monotherapy and also combining anti-PD-1 therapy with several of our existing portfolio assets,” said Steven Stein, M.D., chief medical officer of Incyte.
MGA012 is in an early-stage trial.
Upon closing, Incyte will pay MacroGenics an upfront payment of $150 million. Incyte will receive worldwide rights to develop and commercialize MGA012 in all indications.
MacroGenics will also be eligible to receive up to $420 million in potential development and regulatory milestones, and up to $330 million in potential commercial milestones. If MGA012 is approved and commercialized, MacroGenics would be eligible to receive royalties, tiered from 15 percent to 24 percent, on future sales of MGA012 by Incyte.
Under the terms of the collaboration, Incyte will lead global development of MGA012. MacroGenics retains the right to develop its own research assets in combination with MGA012, with Incyte commercializing MGA012 and MacroGenics commercializing its assets if any such potential combinations are approved.
In addition, MacroGenics retains the right to manufacture a portion of both companies’ global clinical and commercial supply needs of MGA012. MacroGenics intends to utilize its commercial-scale facility, which is expected to be fully operational in 2018.
The transaction is expected to close in the fourth quarter of 2017.
Incyte is best known for its blockbuster blood cancer drug Jakafi. It is working to build a drug pipeline that mainly focuses on cancer.
It recently held a ribbon cutting on an expanded headquarters and research site at the former Wanamaker store site near Wilmington.
