) and Molecular Partners AG recently announced the expansion of
their existing partnership with two separate agreements for the
discovery, development and commercialization of their proprietary
candidate, DARPin (MP0260). DARPin is being developed for
treating patients suffering from serious ophthalmic diseases.
As per the terms of the agreements, Molecular Partners is
entitled to a combined upfront payment of $62.5 million.
Additionally, the company is eligible to receive success-based
payments of up to $1.4 billion for development, regulatory and
sales milestones and tiered royalties.
The first exclusive license agreement focuses on the development
and commercialization of a potent dual anti-VEGF-A/PDGF-B DARPin
and corresponding backups for treating patients suffering from
age-related macular degeneration (AMD) and related ailments. As per
the license agreement, both the companies will join forces for
developing DARPin until human proof of concept.
The second agreement between the partners is a discovery
alliance for designing and developing DARPin against selected
targets, which causes serious eye diseases. At the time of research
Allergan will have the right to exercise three options for
exclusively licensing a collaboration compound focusing on
Allergan will shell out an option exercise fee to Molecular
Partners upon implementation of each option. The company will
also be accountable for all downstream development, manufacturing,
and commercialization activities.
Earlier, in May 2011, Allergan entered into a licensing
agreement with Molecular Partners AG for the development and
commercialization of MP0112 (phase II proprietary therapeutic
DARPin), evaluated for the treatment of retinal diseases.
We note that the ophthalmology market includes big players such
Merck & Co. Inc.
Regeneron Pharmaceuticals Inc.
) among others.
We currently have a Neutral recommendation on Allergan. The
stock carries a Zacks #3 Rank (Hold rating) in the short run.
ALLERGAN INC (AGN): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis
REGENERON PHARM (REGN): Free Stock Analysis
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