Adaptimmune Inks JV With Genentech To Develop Allogeneic T-cell Therapies - Quick Facts

(RTTNews) - Adaptimmune Therapeutics plc (ADAP), a leader in cell therapy to treat cancer, announced Tuesday that it has entered into a strategic collaboration and license agreement with Genentech, a member of the Roche Group (RHHBY) to develop and commercialize allogeneic cell therapies to treat multiple oncology indications.

The collaboration has two components - the development of allogeneic T-cell therapies for up to five shared cancer targets and development of personalized allogeneic T-cell therapies.

For each component, Adaptimmune will be responsible for developing clinical candidates using its induced pluripotent stem cell (iPSC) derived allogeneic platform to produce T-cells (iT cells). Genentech will be responsible for the input TCRs and subsequent clinical development and commercialization.

Under the terms of the agreement, Adaptimmune will receive an upfront payment of $150 million and additional payments of $150 million over five years, unless the agreement is earlier terminated. In addition, Adaptimmune may be eligible to receive research, development, regulatory and commercial milestones payments potentially exceeding $3 billion in aggregate value.

Adaptimmune will also receive tiered royalties on net sales in the mid-single to low-double digits.

Adaptimmune has the right to opt in to a 50/50 U.S. profit/cost share on "off-the-shelf" products and is eligible to receive ex-U.S. regulatory and sales-based milestone payments, as well as royalties on ex-U.S. net sales.

The effectiveness of the agreement is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act.