Array BioPharma Inc. and Celgene Corporation have jointly announced a worldwide strategic collaboration focused on the discovery, development and commercialisation of novel therapeutics in cancer and inflammation.
Under the agreement, Celgene will make an upfront payment of $40 million to Array, and, in return, Array will grant Celgene an option to select drugs developed under the collaboration that are directed to two of four mutually selected discovery targets. Array will be responsible for all discovery and clinical development through phase I or phase II.
The company said that at the time, Celgene will have the option to select drugs resulting from up to two of these four therapeutic programs and will receive exclusive worldwide rights to those drugs, except for Array's limited co-promotional rights in the US. Additionally, Array is entitled to receive, for each drug, potential milestone payments of approximately $200 million, if certain discovery, development and regulatory milestones are achieved and $300 million if certain commercial milestones are achieved, as well as royalties on net sales. Array will retain all rights to the other programs.
"We are very pleased to collaborate with Celgene on the discovery and development of novel targeted drugs. With Celgene's global leadership and expertise in discovery, development and commercialisation of innovative therapies, and Array's solid track record of inventing and progressing targeted drugs into clinical development, we are forming a strong alliance to bring new therapies to patients," said Kevin Koch, Ph.D., president and chief scientific officer, Array BioPharma.
"This collaboration with Array BioPharma is a strategic opportunity for Celgene to work with a demonstrated leader in the discovery and early development of small molecule drugs. Our collaboration illustrates Celgene's commitment to address unmet medical need in cancer and immune-inflammatory disease, while maximizing our clinical, regulatory and commercial potential worldwide," said Tom Daniel, M.D., president of research, Celgene Corporation.