arGEN-X, a clinical-stage biopharmaceutical company focused on developing differentiated therapeutic antibodies for treating cancer and severe autoimmune diseases, has formed a long-term strategic alliance with Shire Pharmaceuticals. The multi-year initiative follows an initial R&D collaboration formed in March 2012.

Under the agreement, Shire will make a total upfront investment of EUR 15 million ($20.4 million) in arGEN-X, consisting of EUR 3 million ($4 million) in cash and EUR 12 million ($16 million) in equity. In addition, it will fund the collaborative research programs at arGEN-X and pay fees, clinical, regulatory, and sales milestones, as well as single-digit royalties on therapeutic product sales. Shire will be responsible for clinical development and commercialization of products, with arGEN-X having the right to license any programs not pursued by Shire into its own development pipeline.

Last month, arGEN-X formed a discovery and development pact for antibodies with Bayer.

Source: arGEN-X