On August 12, 2015 Alligator Bioscience AB, a privately held Swedish biotech company developing immuno-oncology antibodies for directed immunotherapy of cancer, reported that it has entered into a definitive agreement with Janssen Biotech, Inc. (Janssen), one of the Janssen Pharmaceutical Companies of Johnson & Johnson (Press release, Alligator Bioscience, AUG 12, 2015, View Source [SID:1234507223]).

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Under the agreement, Janssen, will be granted an exclusive, worldwide license to Alligator’s clinical candidate ADC-1013. The collaboration was facilitated by the Johnson & Johnson Innovation Center in London. Currently in Phase I clinical trials, ADC-1013 is an agonistic fully human monoclonal antibody targeting CD40, an immuno-stimulatory receptor found on antigen-presenting cells such as dendritic cells. Stimulation of CD40 on dendritic cells initiates a process leading to a dramatic increase in T effector cells attacking the tumor. In addition, a tumor-specific memory is established leading to long term immunity to the cancer.

Alligator Bioscience will receive an up-front payment plus additional contingent payments upon reaching certain pre-determined development, regulatory and commercial milestones up to a potential total of US$700 million. Alligator is also eligible to receive tiered royalties on worldwide net sales upon successful launch and commercialization. In a simultaneous transaction Johnson & Johnson Innovation – JJDC, Inc. will subscribe for new shares of Alligator common stock.

The closing of the transaction is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act

Janssen will be responsible for developing ADC-1013 and will assume responsibility for the clinical studies once the current Phase I dose escalation study is complete. Janssen will have exclusive rights to develop and commercialize ADC-1013 initially targeting a number of solid tumors and hematological cancers and will assume responsibility for all additional research, development, manufacturing, regulatory and commercialization activities.

"This is a key milestone for Alligator Bioscience" said Peter Benson, Chairman of the Board of Directors. "ADC-1013, based on a promising and positive pre-clinical data package, is now in Phase I clinical trials. We are very pleased to welcome this collaboration with a leading, global oncology company and look forward to working together to ensure ADC-1013 will be benefitting patients as soon as possible."