Celgene and Agios Extend Cancer Metabolism Collaboration

Celgene Corporation and Agios have agreed to extend the initial period of exclusivity of the companies’ April 2010 collaboration agreement from three to four years. During this period, Celgene has an exclusive option to drug candidates generated by Agios’ cancer metabolism research platform. Under the terms of the new agreement, Agios will now receive a $20 million payment. Celgene also has the ability to extend the exclusive collaboration period further in the future, for additional payments.

“In the first 18 months of our collaboration, we have made significant progress and have been extremely impressed by the caliber of the team, the science, and the unique research capabilities that Agios brings to this alliance,” said Thomas Daniel, M.D., president of research for Celgene. “As this early extension decision demonstrates, we are enthusiastic about the potential of Agios’ industry-leading approach targeting cancer metabolism to drive the development of multiple innovative, first-in-class cancer therapies.”

Under the terms of the original agreement announced in April 2010, Agios received a $130 million upfront payment, including an equity investment. Agios leads discovery and early translational development for all cancer metabolism programs, while Celgene has an exclusive option to license any resulting clinical candidates at the end of Phase I, and will lead and fund global development and commercialization of some of the licensed programs. Agios retains development and commercialization rights for certain products in the United States. On all programs, Agios may receive up to $120 million in milestones as well as royalties on sales.

“Celgene’s decision to extend our collaboration much earlier than required demonstrates their dedication to our partnership and to the promise of the field of cancer metabolism generally,” said David Schenkein, M.D., chief executive officer of Agios. “This alliance has enabled Agios to identify and advance a broad portfolio of cancer metabolism discovery programs. We have an extremely productive relationship with Celgene, whose team shares our deep commitment to the potential of cancer metabolism to transform patient outcomes.”