CellGenesys' $270M deal with Takeda

Cell Genesys of the USA and Japan's leading drugmaker Takeda have formed a global alliance for the development and commercialization of GVAX immunotherapy for prostate cancer,the former's lead product candidate currently in Phase III clinical development.

Under the terms of the agreement, in exchange for exclusive worldwide commercial rights, Takeda will make an upfront payment to Cell Genesys of $50.0 million and additional milestones totaling up to $270.0 million relating to regulatory approval and commercialization of GVAX immunotherapy for prostate cancer in the USA, the European Union and Japan. Takeda will pay Cell Genesys tiered, double-digit royalties based on net sales in the USA and flat double-digit royalties based on net turnover of the product in all other regions.

From this point forward, Takeda will pay for all external development costs associated with the ongoing Phase III clinical development of GVAX for prostate cancer and will also pay for all additional development and all commercialization costs. Cell Genesys will maintain responsibility for the worldwide manufacture and supply of the product and will retain rights to co-promote this indication in the USA.