Roche and Transgene in $13M R&D deal

Swiss drugmaker Roche and France's Transgene SA have established an exclusive worldwide agreement, under which they will develop and commercialize products from the latter's pipeline for the treatment of human papilloma virus-mediated diseases. The deal includes the vaccine candidate TG 4001 (MVA-HPV-IL2), currently being assessed as a therapy for high-grade cervical intra-epithelial neoplasia, a precancerous abnormality that can lead to cervical cancer.

Under the terms of the accord, Transgene will receive an upfront fee of 13.0 million euros ($17.4 million), as well as a near-term milestone payment of 10.0 million euros related to its role in planning an upcoming Phase III study of TG 4001. The French firm said that, in total, it could earn up to 195.0 million euros from the agreement based on the achievement of certain developmental and sales-related targets, and added that it is entitled to escalating double-digit royalties when products developed under the partnership are successfully commercialized.

In return, Roche receives an exclusive license to TG 4001 and other therapeutic vaccine candidates for HPV-mediated diseases, for which it also has worldwide commercialization rights. The Swiss firm will fund all future development activities.