Baxalta Incorporated, the biopharmaceutical company spun off from Baxter in 2015, and Symphogen, a private Copenhagen, Denmark-based biopharmaceutical company developing recombinant antibodies and antibody mixtures, have formed a broad strategic immuno-oncology collaboration worth up to $1.6 billion.

Under the terms of the agreement, Baxalta and Symphogen will advance therapeutics against six checkpoint targets, with the first program to enter clinical studies in 2017. On a product-by-product basis, following successful completion of Phase I clinical trials, Baxalta will have exclusive option rights to complete late-stage development and worldwide commercialization. Symphogen will receive an upfront payment of $175 million from Baxalta in exchange for the exclusive option rights for six checkpoint therapies. Symphogen will be responsible for performing R&D through Phase I clinical trials at its own expense. The agreement holds a total potential value up to $1.6 billion in option fees and milestones over the long-term, in addition to royalties on worldwide sales. Additional terms, including therapeutic targets, were not disclosed.

Source: Baxalta