Allergan and Molecular Partners have announced that they have significantly expanded their existing relationship by entering into two separate agreements to discover, develop, and commercialize Darpin products for the treatment of serious ophthalmic diseases. Under the terms of the new agreements Molecular Partners will receive combined upfront payments of $62.5 million and is eligible to receive additional success-based payments, including up to $1.4 billion in aggregate development, regulatory and sales milestones, and tiered royalties up into the low double-digits for future product sales.
The first agreement is an exclusive license agreement for the design, development and commercialization of dual anti-VEGF-A/PDGF-B Darpin (MP0260) and its corresponding backups for the treatment of exudative age-related macular degeneration and related conditions. Under the license agreement, Allergan and Molecular Partners will work together to develop MP0260 through human proof of concept, at which point Molecular Partners has the option to co-fund Allergan’s development costs in exchange for a significant royalty step up. The second agreement is an exclusive discovery alliance agreement under which the parties will collaborate to design and develop Darpins against selected targets that are implicated in causing serious diseases of the eye. During the research phase, Allergan has the right to exercise three options to exclusively license collaboration compounds for ophthalmology. Upon execution of each option, Allergan will pay Molecular Partners an option exercise fee and be solely responsible for all downstream development, manufacturing, and commercialization activities.