Innate Pharma SA, a biopharmaceutical company, has signed an agreement with Novo Nordisk  granting Innate Pharma full worldwide exclusive rights to develop and commercialize a clinical-stage anti-C5aR antibody (IPH5401) in immuno-oncology.

IPH5401 is a strategic fit to Innate Pharma’s current immuno-oncology pipeline. It adds a clinical-stage proprietary product to Innate Pharma’s position in the field of antibodies targeting the tumor microenvironment beyond the company’s activities in the adenosine pathway. Innate Pharma plans to start trials with IPH5401 in oncology in 2018.

The terms of the transaction provide for a total upfront payment of EUR 40 million ($45 million), of which EUR 37.2 million ($41.7 million) will be paid in new Innate Pharma shares and EUR 2.8 million ($3.1 million) in cash. Novo Nordisk A/S will be eligible for EUR 370 million ($415 million) in development, regulatory, and sales milestone payments. Novo Nordisk will also be eligible for double-digit royalties on net sales.

After the issuance of the new Innate Pharma shares, the stake of Novo Nordisk A/S in Innate Pharma will increase from 10.3% currently to between 14.6% to 15.8%.

The closing is expected to take place no later than July 12, 2017.

Source: Innate Pharma