Agios advances cancer metabolism collaboration with Celgene

Agios Pharmaceuticals (AGIO) announced an extension of one additional year to the period of exclusivity for their strategic cancer metabolism collaboration with Celgene Corporation (CELG). As a result of the extension, Celgene will maintain its exclusive option to all drug candidates emerging from Agios’ cancer metabolism research platform through April 2015. Under the terms of the agreement, Agios will receive a $20M payment. Celgene has the ability to further extend this collaboration period for one additional year for an additional payment. Under the terms of the original agreement announced in April 2010, Agios received a $130M upfront payment, including an equity investment that comprised the company’s Series B financing round. Agios leads research and early development efforts through Phase 1, while Celgene receives an option to obtain exclusive rights either upon IND acceptance or at the end of Phase 1, to further develop and commercialize drugs emerging from Agios’ cancer metabolism research. Celgene would lead and fund global development and commercialization of some of these drugs, and Agios would retain development and commercialization rights for certain drugs in the United States. On all programs, Agios has the right to receive up to $120M in milestone-based payments as well as royalties on any sales.

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