Japan's Astellas buys rights to Maxygen drug in up to $180M agreement

In a second major drug candidate licensing deal this year, Japanese pharmaceutical major Astellas has entered a global agreement with US biotechnology firm Maxygen under which it will receive worldwide rights to commercialize MAXY-4 lead candidates for all autoimmune diseases and transplant rejection. MAXY-4 is Maxygen's preclinical program to create a next-generation CTLA4-Ig protein for rheumatoid arthritis, transplant rejection and other autoimmune indications.

As consideration, Maxygen will receive a $10.0 million initial payment and is eligible to get up to an additional $160.0 million in pre-launch milestones. The US firm is also set to gain tiered double-digit royalties on all sales. If Maxygen exercises its option to co-promote, revenues from any such therapeutic product will be subject to a profit-sharing arrangement between the parties instead of royalty payments.

Further move in achieving ambitions following recent acquisitions