FORMA Therapeutics announced a strategic collaboration, co-promotion and option agreement with Celgene Corporation under which FORMA and Celgene will discover, develop and commercialize drug candidates to regulate protein homeostasis targets.
Protein homeostasis, which is important in oncology, neurodegenerative and other disorders, involves a tightly regulated network of pathways controlling the biogenesis, folding, transport and degradation of proteins.
FORMA and Celgene will work together in discovery, development, commercialization and co-promotion of the drug.
The drug discovery collaboration between FORMA and Celgene will be launched with an undisclosed up-front payment that will enable Celgene to evaluate selected targets and lead assets in protein homeostasis pathways during the pre-clinical phase.
Based on such evaluation, Celgene will have the right to obtain exclusive licenses with respect to the development and commercialization of multiple drug candidates outside of the United States, in exchange for research and early development payments of up to $200 million to FORMA.
Under the terms of the collaboration agreement, FORMA is incentivized to advance the full complement of drug candidates through Phase 1, while Celgene will be responsible for all further global clinical development for each licensed candidate.
FORMA is eligible to receive $315 million in potential payments based upon development, regulatory and sales objectives for the first ex-U.S. license.
FORMA is also eligible to receive potential payments for successive licenses, which escalate for productivity increasing up to a maximum of $430 million per program.
In addition, FORMA will receive royalties on ex-U.S. sales and additional payments if multiple drug candidates reach defined cumulative sales objectives, providing a significant incentive for FORMA to advance multiple drug candidates.
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