- MacroGenics (NASDAQ:MGNX +11%) enters into a global collaboration and license agreement with Janssen Biotech (JNJ +0.8%) for MGD011, a humanized CD19 x CD3 DART protein, for the potential treatment of B-cell malignancies. MGD011 is based on MacroGenics' proprietary platform for Dual-Affinity Re-Targeting (DART) to simultaneously target CD19 and CD3.
- Under the terms of the agreement, MacroGenics will receive an upfront license fee of $50M, up to $575M in various milestones and double-digit royalties on net sales as well as the option to co-promote the product with Janssen in the U.S.
- Janssen will invest $75M in MacroGenics via the purchase of 1,923,077 shares of common stock at $39 per share and will be fully responsible for developing MGD011. It expects to submit an Investigational New Drug (IND) application to the FDA in 2015.
- MGD011 is designed to redirect T cells, via their CD3 component, to eliminate CD19-expressing cells found in many hematological malignancies.