Janssen in-licenses rights to novel cancer therapy from CSL

Australian blood products and vaccine maker CSL Ltd (CSL: AX) has entered into an agreement with Janssen Biotech, a subsidiary of US health care giant Johnson & Johnson (NYSE: JNJ), that may one day lead to new treatments for hematological cancers and autoimmune diseases.

Under the terms of the deal, Janssen gets an exclusive worldwide license to develop and commercialize CSL362, a novel monoclonal antibody therapy. Currently, CSL362 is being studied in a Phase I clinical trial in acute myeloid leukemia (AML) patients who achieved remission after treatment with chemotherapy and who are at high risk for relapse.

CSL to get undisclosed license fee, milestones and royalties

CSL will receive from Janssen a license fee and be entitled to development, regulatory and sales based milestone payments, as well as royalties on sales. CSL will be responsible for the completion of the Phase I clinical trial in AML and Janssen will be responsible for all further development and commercialization in AML and other indications. The parties will continue to work collaboratively on research programs primarily to support the use of CSL362 in other indications.

Laboratory studies have shown that CSL362 specifically targets AML cells and recruits and activates killer cells from the body’s innate immune system to attack the cancer cells. It is hoped that these natural killer or NK cells will eliminate residual AML cells, preventing relapse of the disease. The target to which CSL362 binds on AML cells (CD123) is also expressed on other hematological cancers and on rare blood cell populations thought to mediate autoimmune diseases such as lupus.

“CSL362 is at a very exciting stage of development and required a partner with a proven capability in oncology and autoimmunity to maximize its potential. We are delighted to have attracted such a high quality partner in Janssen who share a deep commitment to developing this promising therapy for the benefit of very ill patients,” said Andrew Cuthbertson, chief scientific officer of CSL, announcing the Janssen deal at the Australian company’s annual R&D briefing for investors.