GlobeImmune in up to $500M deal with Celgene

US companies GlobeImmune and Celgene have entered into a worldwide strategic collaboration focused on the discovery, development and  commercialization of multiple product candidates based on powerful,  targeted molecular immunotherapy for the treatment of cancer.

Under the terms of the agreement, GlobeImmune will receive a  $40.0-million upfront payment from Celgene, which includes an equity  investment in the former. In return, the latter gets an exclusive option  to all oncology programs, including GI-4000, a Tarmogen technology-based  product currently in Phase II pancreatic cancer studies, as well as all  of its other oncology product candidates on a program-by-program basis.  GlobeImmune will conduct the early development of these agents through  certain pre-defined endpoints. Celgene will have the option to obtain an  exclusive worldwide license to develop and commercialize these unique  immunotherapy product candidates. GlobeImmune is eligible to receive  over $500.0 million in development and regulatory milestones,  double-digit royalties and additional milestone payments based on net  sales of the licensed product candidates.

Tarmogen technology holds several advantages over current approaches in  oncology as its adaptability to a range of proteins, including the  protein encoded by the ras oncogene, creates a powerful immune response  against disease specific cells that improves with each subsequent dose,  is adaptable to a range of diseases and is easily scalable to commercial  levels.