Jazz Pharmaceuticals (NASDAQ:JAZZ) and AbCellera (NASDAQ:ABCL) have signed a preclinical collaboration, option and licensing agreement focused on the discovery and development of T-cell engaging multispecific antibodies for gastrointestinal cancers and other solid tumors.
The partnership combines AbCellera’s antibody discovery capabilities with Jazz’s oncology development expertise as the companies seek to advance new cancer therapies.
Initial Collaboration Covers Three Potential Programs
As part of the agreement, AbCellera will lead discovery and early research activities for two initial development programs.
The deal also includes a commitment to launch a third program within the next 12 months.
Jazz will retain an exclusive worldwide option to further develop and commercialize any therapies that emerge from the collaboration.
Upfront Payments Could Exceed $80 Million
AbCellera will receive $56 million in upfront consideration tied to the first two programs.
A further $28 million payment will become payable once the third research programme is initiated, bringing the potential upfront value of the initial collaboration to $84 million.
The agreement provides immediate funding for research activities while creating the opportunity for substantially larger future payments.
Milestones and Royalties Offer Significant Upside
Should Jazz choose to exercise its development option, AbCellera would become eligible for up to $792 million per program in option fees and milestone payments.
These payments are linked to progress across clinical development, regulatory approvals and commercial sales performance.
In addition, AbCellera would be entitled to receive tiered royalties on future net sales, ranging from mid-single-digit percentages to low double-digit rates.
Scope of Partnership Could Expand
The collaboration also provides flexibility for future expansion.
Both companies may agree to add as many as two additional research programs beyond the initial projects.
AbCellera could also support later-stage activities, including investigational new drug-enabling studies and the manufacturing of clinical trial materials.
Companies Highlight Strategic Fit
Jazz said the agreement supports its broader strategy of expanding its oncology pipeline, particularly in gastrointestinal cancers.
Chief Scientific Officer for Oncology Josh Allen noted that the partnership complements the company’s existing expertise in cancer treatment development.
AbCellera founder and Chief Executive Officer Carl Hansen said the collaboration will utilize the company’s T-cell engager platform, including proprietary CD3-binding antibodies, multispecific protein engineering technologies and high-throughput functional screening capabilities.
The companies believe the combination of these technologies could accelerate the development of novel therapies for patients with difficult-to-treat solid tumors.