Covagen collaborates with Mitsubishi Tanabe for the development of bispecific FynomAbs

Privately-held Swiss firm Covagen has entered into a strategic research collaboration and license agreement with Japanese drug major Mitsubishi Tanabe Pharma (TYO: 4508) Japan) and its fully owned subsidiary Tanabe Research Laboratories USA (TRL) for the development of bispecific FynomAbs, worth potentially more than 112 billion euros ($145.2 million).

Mitsubishi Tanabe will pay to Covagen 4.0 million euros upfront for the global, exclusive rights to bispecific FynomAbs against one target pair. Under the deal, Mitsubishi Tanabe will fund all research activities and be solely responsible for the development, manufacturing and global commercialization activities. Upon achievement of certain research, development and regulatory milestones, Covagen will be entitled to receive up to 108.25 million euros for FynomAbs against the first target pair as well as tiered royalties on worldwide net sales of products resulting from the collaboration. Financial terms are substantially similar for FynomAbs addressing the second target pair which TRL and Mitsubishi Tanabe have the option to select.

Under the agreement, Covagen will use its proprietary Fynomer-antibody platform to generate bispecific proteins (FynomAbs) against two target pairs selected by TRL and Mitsubishi Tanabe. Fynomers are small binding proteins that can be engineered to bind to any antigen of interest. Because of their excellent biophysical properties, Fynomers can be readily fused to therapeutic proteins such as antibodies to create bispecific FynomAbs.