Swiss-based Cilag, an affiliate of Janssen, the pharmaceuticals division of Johnson & Johnson, has entered into a global collaboration and license agreement with biotech company argenx to develop and commercialize cusatuzumab, an investigational therapeutic antibody for treating numerous cancers, including hematological malignancies.

Cusatuzumab, which is designed to block CD70, an immune checkpoint implicated in various cancers, is currently in Phase 1/2 trials in patients with acute myeloid leukemia (AML) and high-risk myeodysplastic syndromes (MDS).

“We are pleased to enter into this strategic partnership with argenx and advance a promising antibody for the treatment of AML and other blood cancers where current treatment is limited and effective new interventions are needed for patients,” said Mathai Mammen, global head of Janssen Research & Development.

Under the terms of the agreement, Janssen will make an upfront payment of $300 million as well as additional payments, which could be worth up to $1.3 billion, on meeting certain development, regulatory and sales milestones. Parent company Johnson & Johnson Innovation will also make a $200-million equity investment in argenx.

Janssen will be responsible for commercialization worldwide, although argenx has retained the option to co-promote the drug in the US, where the companies have agreed to share economics 50:50 on a royalty basis. Outside the US, Janssen will pay argenx tiered, double-digit sales royalties