bluebird bio in multi-million dollar oncology deal with Celgene

In a second licensing accord this month, US biotech firm Celgene Corp (Nasdaq: CELG) has signed a strategic alliance with privately-held biotech firm bluebird bio to discover, develop and commercialize novel disease-altering gene therapies in oncology.

Financial terms of the agreement include an undisclosed upfront payment and up to $225 million per product in potential option fees and clinical and regulatory milestones. bluebird bio also has the right to participate in the development and commercialization of any licensed products resulting from the collaboration through a 50/50 co-development and profit share in the USA in exchange for a reduction of milestones. Royalties would also be paid in regions where there is no profit share including in the USA if bluebird bio declines to exercise their co-development and profit sharing rights.

The collaboration will focus on applying gene therapy technology to genetically modify a patient’s own T-cells, known as chimeric antigen receptor (CAR) T-cells, to target and destroy cancer cells. The multi-year research and development collaboration has the potential to lead to the development and commercialization of multiple CAR T-cell products. Celgene has an option to license any products resulting from the collaboration after the completion of a Phase I clinical study for each such product. bluebird bio will be responsible for R&D activity through Phase I studies.