Novo Nordisk ups stake in Innate Pharma along with sale of anti-NKG2A

Danish insulin giant Novo Nordisk (NOV: CO ) has sold full development and commercialization rights to the anti-NKG2A antibody, a first-in-class immune checkpoint inhibitor ready for Phase II development in oncology to French drugmaker Innate Pharma (IPH: FP).

Novo Nordisk conducted a large Phase I safety trial with anti-NKG2A in patients with rheumatoid arthritis, demonstrating a good safety profile for both iv and sc routes at single and multiple administrations. Novo Nordisk has decided to advance other compounds for further development in inflammation, including anti-NKG2D, currently in Phase II development and generated within the collaboration between Innate Pharma and Novo Nordisk.

Will receive 600,000 shares as part of the accord

Under the terms of the deal, Novo Nordisk will receive 2 million euros ($2.7 million) in cash and 600,000 shares of the Marseille-based company for licensing anti-NKG2A to Innate and be eligible to a total of 20 million euros in potential registration milestones and single-digit tiered royalties on future sales. The acquisition of the Innate shares is subject to approval by Innate’s shareholders’ at an extraordinary general meeting on 27 March 2014. Novo Nordisk is already a minority shareholder in Innate Pharma.

Herve Brailly, chief executive of Innate Pharma noted: "This is a superb opportunity for Innate Pharma. In addition to lirilumab partnered to Bristol-Myers Squibb and currently in Phase II, we now have a proprietary Phase II ready, first-in-class, immuno-modulating antibody with favorable Phase I safety data and the promise of broad development potential. Our initial clinical development plan is in oncology, and we expect to start the clinical program before the end of this year. This license consolidates Innate Pharma’s leadership in immuno-modulating antibodies targeting the innate immune system."