BeiGene of Beijing has entered a “transformational” collaboration with Celgene. The agreement, which involves BeiGene’s clinical-stage PD-1 immuno-oncology drug, has a total value of almost $1.4 billion, setting a record as the largest out-licensing of a China discovered novel drug candidate. Celgene will own global rights to BeiGene’s BGB-A317 immuno-oncology drug, except for Asia, though it will own Japan rights. In return, Celgene will pay $263 million upfront and make a $150 million equity investment in BeiGene. The agreement provides for up to $980 million in development, regulatory and sales milestones. And BeiGene will acquire China rights (including manufacturing) to Celgene’s three China-approved cancer drugs, plus a fourth candidate. In addition, BeiGene will take over Celgene’s existing China sales organization, which BeiGene will use to market its own portfolio of cancer drugs, once they are approved.
Source: ChinaBio Today
