Australian biotechnology company, G2 Therapies Limited, and global healthcare leader, Novo Nordisk, entered a biotechnology licensing agreements. The agreement between G2 Inflammation Pty Ltd (G2I), a subsidiary of G2 Therapies Limited, and Novo Nordisk A/S, will see both companies collaborate to develop, manufacture and commercialise new anti-inflammatory therapies based on G2's C5a Receptor antibodies.

The terms of the agreement include a USD 6 million upfront payment and other success-based payments to a potential total of USD 102 million, plus royalties on commercialised therapeutics. Additionally, G2I will be reimbursed by Novo Nordisk for expenses incurred under this collaboration, claims the company release.

The antibodies licensed under this agreement were first developed by Professor Mackay at the Garvan Institute of Medical Research. Anti-C5a Receptor therapies have potential application in several important indications, including rheumatoid arthritis and other autoimmune diseases.

"This is one of the most significant licensing agreements achieved by any Australian biotech, and confirms our strategy of applying our unique antibody development capabilities to a pipeline of validated gene targets from the Garvan Institute," said Stephen Conlon, CEO, G2 Therapies.

The agreement with G2 provides an important addition to Novo Nordisk's growing portfolio of biopharmaceuticals projects within cancer and inflammation.

Terje Kalland, head of Novo Nordisk's biopharmaceuticals research unit said, "Our strategy is to leverage our core capabilities within proteins and inflammation through partnerships with leading biotech companies and research institutions around the world. G2's project falls right into our own focus areas, and we are excited about the potential of this joint project."

Novo Nordisk is a healthcare company and a world leader in diabetes care and biopharmaceuticals. The company manufactures and markets pharmaceutical products and services.