Incyte Corporation, a Wilmington, Delaware-based biopharmaceutical company, and MacroGenics, a Rockville, Maryland-based clinical-stage biopharmaceutical company, have signed a license agreement worth up to $900 million for MacroGenics’ MGA012, an investigational monoclonal antibody immuno-oncology candidate that inhibits programmed cell death protein 1 (PD-1).

Upon closing, Incyte will pay MacroGenics an upfront payment of $150 million. Incyte will receive worldwide rights to develop and commercialize MGA012 in all indications. Per the collaboration, MacroGenics will also be eligible to receive up to $420 million in potential development and regulatory milestones and up to $330 million in potential commercial milestones. If MGA012 is approved and commercialized, MacroGenics would be eligible to receive royalties, tiered from 15% to 24%, on future sales of MGA012 by Incyte.

Under the collaboration, Incyte will lead global development of MGA012. MacroGenics retains the right to develop its pipeline assets in combination with MGA012 with Incyte commercializing MGA012 and MacroGenics commercializing its asset(s), if any such potential combinations are approved.

In addition, MacroGenics retains the right to manufacture a portion of both companies’ global clinical and commercial supply needs of MGA012. MacroGenics intends to use its commercial-scale GMP facility, which is expected to be fully operational in 2018, according to Incyte.

The transaction is expected to close in the fourth quarter of 2017, subject to the early termination or expiration of any applicable waiting periods under the Hart-Scott-Rodino Act and customary closing conditions.

Source: Incyte