Agios extends cancer metabolism accord with Celgene

Metabolism specialist Agios Pharmaceuticals (Nasdaq: AGIO) has announced an extension of one additional year to the period of exclusivity for their strategic cancer metabolism collaboration with Celgene Corp (Nasdaq: CELG), with regard to the original accord that involved an initial payment of $130 million to Agios and an equity investment in the firm (The Pharma Letter April; 16, 2010).

“The quality of the scientific interaction and collaboration with Agios has been outstanding,” said Thomas Daniel, president of research for Celgene, noting: “We are pleased that while AG-221 and AG-120 are advancing into clinical development, significant progress is also being made on new targets in cancer metabolism.”

As a result of the extension, Celgene will maintain its exclusive option to all drug candidates emerging from Agios’ cancer metabolism research platform through April 2015. Under the terms of the deal, Agios will receive a $20 million payment. Celgene has the ability to further extend this collaboration period for one additional year for an additional payment. On all programs, Agios has the right to receive up to $120 million in milestone-based payments as well as royalties on any sales.