Jazz Pharmaceuticals and AbCellera announced a collaboration that could bring AbCellera up to $848 million in upfront and potential program payments tied to the first three programs, before any royalties.
Under the deal: $56 million is payable upfront for the first two research programs. An additional $28 million is due when the third program is started. If Jazz exercises its option on a program, AbCellera could receive up to $792 million per program in option fees and development, regulatory and commercial milestone payments. AbCellera would also be entitled to tiered royalties ranging from mid-single digits to low double-digits on net sales.
The collaboration starts with two initial discovery programs, with a third program to begin within 12 months. Jazz also has the option to expand the partnership by up to two additional programs.
The work is aimed at discovering and developing next-generation T-cell engaging multispecific antibodies for gastrointestinal cancers and other solid tumors. Jazz will have the exclusive worldwide right to develop and commercialize each program if it exercises its option. Following these announcements, the company's shares moved 6.19%, and are now trading at a price of $5.405. Check out the company's full 8-K submission here.
