On October 21, 2015 Palobiofarma reported that they have entered into a licensing agreement with Novartis (Press release, Palobiofarma, OCT 21, 2015, View Source [SID:1234507780]). Under the terms of the agreement Novartis will acquire exclusive global rights to develop, manufacture and commercialize Palobiofarma´s adenosine A2A receptor antagonist PBF-509, currently entering Phase I clinical trials in Non-Small Cell Lung Cancer. Additionally, Novartis will get access to several adenosine-related patents from Palobiofarma related to the role of adenosine in immunotherapy. Tumour cells have developed mechanisms to evade the immune system, including through the production of a natural molecule called adenosine. By stimulating A2A receptors, adenosine stops T-cells within the immune system from proliferating and reduces their ability to destroy cancer cells. Blocking A2A receptors can therefore promote the anti-cancer response of T-cells within in the tumour microenvironment. Palobiofarma will receive an upfront payment of $15 million USD and is eligible to receive near-term clinical, development and commercial milestones on successful projects as well up to double-digit tiered royalties on net sales.
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Julio Castro, Chief Executive Officer of Palobiofarma, said: "We are delighted to collaborate with Novartis, a strong player in the immuno-oncology field. This agreement represents one of the best agreements ever signed in the history of the Spanish Biotechnology, and we are very proud of it. We have good reasons to believe that the current agreement is just the start of a successful research and development collaboration between the two companies".