AbbVie takes up its exclusive license option on I-O drug ARGX-115

US pharma firm AbbVie (NYSE: ABBV) has exercised its exclusive license option to develop and commercialize ARGX-115, an antibody targeting the novel immuno-oncology target glycoprotein A repetitions predominant (GARP), from Belgo-Dutch biotech argenx (Euronext Brussels: ARGX), whose shares rose 6% in early trading and were still up 3.62% to 77.20 euros by late afternoon.

ARGX-115 is in pre-clinical development, meaning it still has several stages of clinical trials to pass before it could enter the market. ARGX-115 was discovered under argenx’ Innovative Access Program with the de Duve Institute, Université Catholique de Louvain, and WELBIO and exclusively licensed under a research and option agreement in 2013.

argenx and AbbVie entered into an option and license agreement for ARGX-115 in April 2016. With the option exercise announced today, AbbVie obtains a worldwide, exclusive license to develop and commercialize ARGX-115-based products. argenx is now eligible to potentially receive development, regulatory and commercial milestone payments of up to $625 million, as well as tiered royalties on ARGX-115-based product sales, if approved. argenx also has the right to co-promote ARGX-115-based products in the EU and Swiss Economic Area.