MacroGenics in deal potentially worth $1 billion with Gilead for DART products

Privately held US biotech firm MacroGenics has entered into a license agreement with Gilead Sciences (Nasdaq: GILD) for the development and commercialization of Dual-Affinity Re-Targeting (DART) products directed at up to four undisclosed targets. MacroGenics’ DART technology is a proprietary, bi-specific antibody platform in which a single recombinant molecule is able to target two different antigens.

Under the terms of the accord, MacroGenics could receive a total of up to $30 million in license fee payments, and up to an additional $85 million in preclinical milestones across the four DART programs. Gilead has exclusive worldwide rights for three of the programs. For one program, MacroGenics retains development and commercialization rights outside of North America, Europe, Australia and New Zealand, which encompasses multiple major markets including Japan, China, Korea, Brazil, Russia and others.

MacroGenics’ research activities to be fully funded

Gilead will fully fund MacroGenics’ research activities with respect to the four programs. MacroGenics could also receive up to around $1 billion in clinical, regulatory and commercialization milestone payments if all four programs achieve the requisite milestones. Finally, MacroGenics may receive tiered (up to low double-digit) royalties on future net sales.