Pfizer Inc and Incyte Corporation have entered into a global collaborative research and license agreement for the development, manufacture and marketing of novel oral CCR2 antagonists.
Under the agreement Pfizer gains exclusive worldwide development and commercialisation rights to Incyte's portfolio of CCR2 antagonist compounds, the most advanced of which is currently in Phase IIa studies in rheumatoid arthritis and insulin-resistant obese patients. Pfizer's rights extend to the full scope of potential indications, with the exception of multiple sclerosis and one other undisclosed indication, where Incyte retains exclusive worldwide rights, along with certain compounds. Incyte will not have obligations to Pfizer on pre-clinical development candidates it selects for pursuit in these indications, states a company release.
Incyte will receive an upfront payment of $40 million and will be eligible to receive additional milestone payments of up to $743 million for the successful development and commercialisation of CCR2 antagonists in multiple indications, as well as royalties on worldwide sales.
Pfizer will purchase $20 million in convertible subordinated notes, with $10 million to be issued within 20 days after the effective date of the agreement and another $10 million to be issued after Incyte files an Investigational New Drug Application in a retained Incyte indication. The notes will bear no interest and will be convertible into Incyte common stock at a premium.
Pfizer will also provide research funding to Incyte to support the continued expansion of the CCR2 compound portfolio.
The agreement is subject to antitrust review and approval, and other standard closing conditions.
"This transaction is a further step in our strategy to augment Pfizer's internal research and development efforts with high-potential, externally sourced product candidates and technologies," said Martin Mackay, Pfizer senior vice president worldwide research and technology. "We are excited about Incyte's CCR2 antagonist programme and its potential use in treating a range of chronic diseases with significant unmet medical need."
Paul A. Friedman, president and CEO of Incyte stated, "Our CCR2 antagonist program has the potential to generate multiple products in a variety of major indications, and Pfizer, with its unique breadth of capabilities, is ideally positioned to maximise the value of the programme to patients. The deal structure, which provides for us to retain certain compounds for our independent pursuit in two potentially high-value specialty indications, supports our efforts to build a leading drug discovery and development company. We look forward to working with Pfizer to realise the full potential of our first internally-developed programme
The chemokine receptor CCR2 has a central role in the establishment and maintenance of chronic inflammatory processes. CCR2 and its primary ligand, MCP-1, represent a critical signalling pathway for the recruitment of peripheral blood monocytes to sites of immune-mediated inflammation, where they become inflammatory macrophages.