Jazz Pharmaceuticals Collaborates with AbCellera to Develop Next-Generation Antibodies

Jazz Pharmaceuticals (JAZZ) and AbCellera (ABCL) announced a preclinical research collaboration, option and license agreement to discover and develop next-generation T-cell engaging multispecific antibodies. The collaboration will leverage AbCellera's antibody discovery engine to deliver optimized development candidates for multiple gastrointestinal cancers and other solid tumors. AbCellera's T-cell engager platform is a fully integrated capability, from discovery to clinical manufacturing, for developing multispecific TCEs for difficult-to-treat cancers. The platform includes novel and proprietary panels of CD3-binding antibodies, costimulatory targeting arms, multispecific protein engineering technology, and a suite of high-throughput functional assays. Under the terms of the agreement, AbCellera will perform discovery and early-stage research activities for two initial programs with a commitment to start a third discovery program within 12 months. Jazz is granted an option in connection with each research program and, following exercise of its option and payment of an option fee, will have the exclusive, worldwide right to develop and commercialize each program. AbCellera will receive $56M in total upfront payments for the first two research programs plus an additional $28M due upon initiation of the third program. Should Jazz exercise its option for development, AbCellera is eligible to receive up to $792M per program in option fees and development, regulatory, and commercial sales milestone payments along with tiered royalties on net sales ranging from mid-single digits to low double-digits. In addition, Jazz and AbCellera may mutually agree to initiate up to two additional programs, and to have AbCellera conduct certain activities for investigational new drug-enabling studies and manufacture clinical supply for any program under the collaboration.