STORY UPDATE
CAMBRIDGE, Mass.—Acceleron announced it has received the upfront payment from Celgene Corp. following clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 for the collaboration between the two companies previously announced on February 20, 2008. The collaboration between Acceleron and Celgene is a joint development, joint commercialization agreement on ACE-011, a first-in-class, novel bone-forming compound, and three discovery stage programs for the treatment of cancer and cancer-related bone loss.
CAMBRIDGE, Mass.—Acceleron Pharma Inc. and Celgene Corp. have taken the wraps off a worldwide strategic collaboration for the joint development and commercialization of ACE-011, a first-in-class, novel bone-forming compound.
The collaboration combines both companies' resources and commitment to developing products for the treatment of cancer and cancer-related bone loss. In preclinical and early clinical studies, this innovative compound has reported success in key biomarkers of bone formation. The companies also signed an option agreement for certain discovery stage programs.
Under the terms of the agreement, Celgene and Acceleron will jointly develop, manufacture and commercialize Acceleron's products for bone loss. Celgene will make an upfront payment to Acceleron of $50 million, which includes a $5 million equity investment in Acceleron. In addition, in the event of an initial public offering of Acceleron, Celgene will purchase a minimum of $7 million of Acceleron common stock.
"We believe Celgene's established commercial, clinical, regulatory and international capabilities complemented by Acceleron's expertise in novel biologics drug discovery, manufacturing and development may result in a successful partnership that reflects a shared vision to improve the lives of patients worldwide," says John Knopf, Ph.D., CEO of Acceleron.
Acceleron will retain responsibility for initial activities, including research and development, through the end of Phase IIa clinical trials, as well as manufacturing the clinical supplies for these studies. In turn, Celgene will conduct the Phase IIb and Phase III clinical studies and will oversee the manufacture of Phase III and commercial supplies. Acceleron will pay a share of the development expenses and is eligible to receive development, regulatory and commercial milestones of up to $510 million for the ACE-011 program and up to an additional $437 million for each of the three discovery stage programs.
The companies will co-promote the products in North America. Acceleron will receive tiered royalties on worldwide net sales.
