Maxygen Announces MAXY-G34 Licensing Arrangement with Cangene for Acute Radiation Syndrome
News May 08, 2009
Maxygen, Inc. has announced that it has entered into an agreement with Cangene Corporation under which it has granted Cangene an option to obtain an exclusive license to Maxygen’s proprietary MAXY-G34 protein therapeutic for use in treating acute radiation syndrome (ARS).
Under the agreement, Cangene has paid Maxygen an up-front fee of $500,000. If Cangene is awarded a specified government development contract that meets certain Cangene criteria, Cangene would exercise an option for an initial license and pay Maxygen an initial licensing fee. Maxygen would also be entitled to additional licensing fees based upon a percentage of Cangene’s net contract revenues under the development contract.
The agreement also provides Cangene with an option to obtain a subsequent license to use MAXY-G34 for any potential future government contracts related to the treatment or prevention of neutropenia associated with ARS.
Cangene also has the right to acquire a fully paid automatic grant of the initial license and the subsequent license for a one-time payment to Maxygen of $30 million. This right would expire two years after Cangene’s exercise of its option for the initial license.
Maxygen has retained all rights to MAXY-G34 for commercial development of all therapeutic areas outside of the ARS indication, including all rights for chemotherapy-induced neutropenia indications.
Cangene has concurrently submitted a bid to develop a therapeutic for treating ARS under a request for proposal (RFP) issued March 13, 2009 by the Biomedical Advanced Research and Development Authority (BARDA) within the U.S. Department of Health and Human Services. Cangene’s submission under the RFP specifies its intention to develop MAXY-G34 for the ARS indication.
BARDA’s RFP solicitation is entitled Advanced Development of Therapeutics for Treating Neutropenia Resulting from Acute Exposure to Ionizing Radiation and carries a solicitation number of HHS BARDA #09-100-SOL-00005. It specifies the intention to award a one-year base contract with four, one-year extension options.