Janssen in-licenses insulin-producing beta cells from Evotec

German biotech firm Evotec AG (EVT: TecDAX) has licensed to Janssen Pharmaceuticals, a unit of US health care giant Johnson & Johnson (NYSE: JNJ), a portfolio of small molecules and biologics designed to trigger the regeneration of insulin-producing beta cells.

Under the terms of this deal, Janssen will receive exclusive access to a series of candidates designed to trigger the regeneration of insulin-producing beta cells. The small molecules and biologics were identified by scientists in the Harvard University laboratory of Douglas Melton, and further analyzed in collaboration with scientists from Evotec, as part of the CureBeta research and development program.

The agreement triggers an upfront payment of $8 million to Evotec. On achievement of certain preclinical, clinical, regulatory and commercial goals, Janssen would make future milestone payments, of up to a total of about $200 million to $300 million per product. In addition, Janssen will pay royalties on future sales of any products that result from this collaboration. The upfront, milestone and royalty payments will be shared by Evotec and Harvard under pre-agreed terms. Evotec will receive additional research support for discovery and early development work that will be conducted in collaboration with Janssen.