Modern Biosciences announces RA R&D agreement with Janssen Biotech

UK-based drug development company Modern Biosciences has entered into an R&D alliance and global option and licence agreement with Johnson & Johnson’s (NYSE: JNJ) subsidiary Janssen Biotech in relation to MBS’ novel bone-protective compounds for the treatment of rheumatoid arthritis.

The goal of the collaboration, facilitated by the Johnson & Johnson Innovation Centre in London, is to develop new drugs for the treatment of RA. Under the terms of the exclusive agreement, Modern Biosciences (MBS) will receive an up-front payment and is eligible for development, regulatory and commercialization milestone payments up to a potential total of £176 million ($277 million).

In addition, MBS will receive royalties on future sales of any products that may result from the alliance upon successful launch and commercialization. MBS’ compounds work by a novel mechanism of action that targets both the inflammatory component of RA and the associated bone destruction. The most advanced of MBS’ compounds is in pre-clinical development and is due to enter Phase I clinical studies in 2015.