MacroGenics, Inc., Takeda Pharmaceutical Co. Ltd. Draw Up $1.6B DART Pact

Astellas Pharma, Proteostasis Therapeutics Forge $1.2 Billion Genetic Disease Drug Development Pact

September 30, 2014

By Mark Terry, BioSpace.com Breaking News Staff

MacroGenics, Inc. , headquartered in Rockville, Md., and Takeda Pharmaceutical (Osaka, Japan), today announced inking a collaboration agreement to develop and commercialize four potential product candidates. Earlier in the year the two companies announced announced a strategic alliance to develop MGD010, a compound that modulates the function of human B cells without B cell depletion, which has implications in autoimmune diseases and Systemic Lupus Erythematosus (SLE). The new deal is in addition to MGD010.

The four new compounds are built on MacroGenics’ bi-specific Dual-Affinity Re-Targeting (DART) DART platform. This technology allows multiple antigens or cells to be targeted using a single molecule with an antibody-like structure. The resulting molecules, dubbed DARTs, can be configured to attack cancer cells and various immune cells related to autoimmune disorders and infectious disease.

In May 2014, MacroGenics presented pre-clinical data on MGD010, a DART. It showed the ability to inhibit the development of graft-versus-host disease in a humanized murine model. The data was presented at the American Association of Immunologists’ Annual Meeting held in Pittsburg, Penn. MGD010 interacts with B cells by simultaneously targeting CD328, a key negative regulator of the autoimmune response, as well as CD79B, a B-cell receptor. MGD010 is believed to block the activated B cells that promote the autoimmune response.

Under the terms of the new agreement, Takeda will hold an exclusive worldwide license for each of the four product candidates. Takeda will fund the R&D activities related to those compounds, including reimbursement of any expenses MacroGenics incurs in the process. If and when they are successfully developed and commercialized by Takeda, MacroGenics has the potential to receive about $400 million in various milestone payments for each of the potential drugs. MacroGenics will receive royalties on any global net sales and will have the option to co-promote each candidate product with Takeda in the U.S. In addition, MacroGenics has the option to fund part of Phase 3 clinical studies of each product candidate and receive a North American share of profits in return.

“We are delighted to enter our sixth DART collaboration with a major pharmaceutical company that has proven global development and commercialization capabilities,” said MacroGenics president and CEO in a press release. “Building upon MGD010, I am very excited about the opportunity to expand our collaboration in the autoimmune area with an existing partner that has demonstrated clear support in enabling us to further broaden and accelerate our pipeline of innovative DART-based product candidates.”

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