Wednesday, September 20, 2017
Arcus Biosciences, a US-based biotechnology company focused on the discovery and development of innovative cancer immunotherapies, announced today that it has entered into an option and license agreement with Taiho Pharmaceutical Co. Ltd., for the potential development and commercialization of product candidates in Arcus’s portfolio in Japan and certain other territories in Asia (excluding China).
“We founded Arcus in 2015 to create a broad portfolio of novel molecules that target the most prevalent mechanisms of tumor-induced immuno-suppression,” said Terry Rosen, Arcus’s CEO. “Our relationship with TAIHO began with the inaugural investment of Taiho Ventures in Arcus in 2016, and since that time, we have come to recognize an alignment in vision with TAIHO. We are thrilled to collaborate with TAIHO on the advancement of our rapidly growing pipeline for the benefit of patients in Japan and other important territories in Asia. Given its significant expertise in the oncology area, we are confident that TAIHO will maximize the value of our programs in these regions. We look forward to advancing at least four immuno-oncology product candidates into clinical development by the end of 2018.”
Based on the terms of the agreement, Arcus will receive $35mm in payments during the first three years of the agreement. In return for these payments, TAIHO will receive an option to in-license the development and commercialization rights in its region to clinical stage product candidates from Arcus’s portfolio over a five-year term. For any product candidate for which TAIHO exercises a license, Arcus will receive an option payment and is eligible to receive up to $275mm in development, regulatory and commercial milestone payments per molecule. Arcus is also eligible to receive royalties on the net sales of each product candidate that TAIHO commercializes in its region ranging from the high single digits to mid-double digits.
