Celgene takes up option on bb2121 CAR-T therapy

Two years after paying $10 million on a option to license a chimeric antigen receptor (CAR) T cell therapy, US biotech major Celgene (Nasdaq: CELG) has entered into an agreement with bluebird bio (Nasdaq: BLUE) to co-develop and co-promote bb2121, an investigational anti-B-cell maturation antigen (BCMA) CAR-T cell therapy for the potential treatment of patients with relapsed/refractory multiple myeloma in the USA.

The original agreement in 2013 between the companies provided for up to $225 million per product in potential option fees and clinical and regulatory milestones. Meantime, according to a filing with the US Securities and Exchange commission, bluebird is now eligible for a $70 million milestone payment from Celgene for the first indication, with additional milestones pending for other cancer types. Bluebird will also be eligible for tiered mid-single to low-teen royalties on net sales outside the USA.

The latest news saw bluebird’s shares climb 2.6% in premarket trade yesterday but drift back later, while Celgene shares 3.03% to $88.41 by close of trading.