arGEN-X and LEO Pharma enter into alliance to develop antibody-based treatments for skin conditions
21 May 2015 – Breda, the Netherlands/Ghent, Belgium – arGEN-X N.V. (Euronext Brussels: ARGX) and LEO Pharma A/S, a global healthcare company dedicated to helping people achieve healthy skin, today announced an alliance in which they will collaborate to develop innovative antibody-based solutions for the treatment of chronic inflammation underlying many skin conditions.
Under the terms of the agreement, LEO Pharma receives exclusive access to an existing arGEN-X antibody currently in preclinical development for inflammation-related skin diseases. arGEN-X receives pre-IND payments of EUR 4.5 million, including an upfront payment. arGEN-X will also receive clinical, regulatory, and sales milestone payments that may total upward of EUR 100 million, as well as tiered, potentially double digit royalties on resulting products. The companies will co-fund product development costs up to clinical trial application (CTA) filing. Additional terms and financial details of the collaboration were not disclosed.
“We see huge potential in this new partnership in harnessing the complementary expertise of both companies: arGEN-X’ advanced knowledge and capabilities in therapeutic antibody development and LEO Pharma’s global expertise in bringing products to market that meets the needs of dermatology patients,” said Tim Van Hauwermeiren, Chief Executive Officer of arGEN-X. “We see LEO Pharma’s selection of our program and approach to antibody creation as an important validation of our position in the therapeutic antibody space. This collaboration is central to arGEN-X’ strategy to be the preferred antibody partner of global leaders in specific disease areas beyond our own focus.”
“At LEO Pharma we listen to the needs of people with skin conditions and translate this insight into better, personalised solutions. Our alliance with arGEN-X is an important step forward as it marks our entry into the area of biotherapeutics for dermatology,” said Thorsten Thormann, Senior Vice President, New Product Discovery at LEO Pharma. “Therapeutic antibodies have been clinically validated and proven to be successful in the treatment of inflammatory disorders including diseases afflicting the skin. This collaboration accentuates LEO Pharma’s strong commitment to build strategic partnerships – ultimately with the aim to deliver new innovative solutions to patients – faster.”
Torreya Partners (Europe) LLP acted as financial advisor to arGEN-X on the transaction.