Celgene extends collaboration with FORMA Therapeutics

Privately-held FORMA Therapeutics has entered into a second collaboration agreement with US biotech major Celgene (Nasdaq: CELG) to evaluate additional therapeutic candidates across important emerging target families in the areas of protein homeostasis, inflammation & immunology, and neurodegeneration.

The original agreement signed in 2014 involved $315 million of staged payments to FORMA, with the potential for a total of around $1 billion.

On the execution of this new agreement, FORMA received an upfront cash payment of $195 million and Celgene was granted an option to license ex-US rights to select current and future drug candidates through to October 1, 2019. Celgene will assume responsibility for all global development activities and costs for in-licensed drug candidates after completion of Phase I clinical trials. Under the agreement, FORMA will be eligible to receive milestone payments for licensed drug candidates if certain development, regulatory and sales milestones are achieved. FORMA retains US rights to all such licensed assets, including responsibility for manufacturing and commercialization in their territory. For products not licensed to Celgene, FORMA will maintain worldwide rights.