Genocea inks license option deal on novel HSV-2 vaccine

US vaccine discovery and development company Genocea Biosciences (Nasdaq: GNCA) saw its shares close own 1.6% at $2.41 by close of trading on Tuesday, despite announcing a material transfer agreement (MTA) and exclusive license option with Japan’s Shionogi (TYO: 4507) to develop a novel Herpes simplex virus (HSV)-2 vaccine using Genocea’s proprietary HSV-2 antigens from the GEN-003 program, which the company discontinued in 2017.

Under the terms of the accord, Shionogi will pay $2 million for the exclusive option to evaluate the HSV-2 antigens and to negotiate a license prior to expiration of the MTA. Upon exercise of Shionogi’s option, terms of the license are expected to include an upfront payment, regulatory and sales milestones, as well as tiered royalties. Final terms of the license agreement will be based on results of the MTA evaluation and overall diligence. If licensed, Shionogi will assume responsibility for global development and commercialization of the HSV-2 vaccine product.

“The HSV-2 antigens were identified by our proprietary ATLAS platform. This agreement with Shionogi further validates our ATLAS technology to identify clinically relevant and best-in-class antigens across a range of illnesses, including infectious diseases and cancer. We are incredibly pleased to support Shionogi’s efforts to develop a novel vaccine for the millions of people seeking more effective treatment options for their genital herpes disease,” said Chip Clark, president and chief executive of Genocea.