Celgene exercises early option to Agios' AG-221
Celgene Corp. (NASDAQ:CELG) exercised an option under a 2010 deal with Agios Pharmaceuticals Inc. (NASDAQ:AGIO) to license exclusive, worldwide rights to develop and commercialize Agios' AG-221, an inhibitor of mutated isocitrate dehydrogenase 2 (IDH2). The compound is in Phase I testing to treat advanced hematologic malignancies that have an IDH2 mutation, including acute myelogenous leukemia (AML). Celgene, which had the option to license the rights at the end of Phase I testing, exercised the option early based on Phase I data. Agios declined to disclose specific data.
Agios will continue to conduct early clinical development and regulatory activities for AG-221 in collaboration with Celgene, which is responsible for all development costs. Agios declined to disclose the option exercise fee, but for the AG-221 program, Agios is eligible for up to $120 million in milestones, plus tiered royalties, and also has the right to conduct a portion of U.S. commercialization activities. Agios received $130 million up front in the initial deal, including an equity investment (see BioCentury, Nov. 19, 2012). ...