The aim of the collaboration, which will IGM’S leverage proprietary IgM antibody technology platform, is to commercialize a new class of potential therapeutics combining the superior features of multi-valent IgM antibodies over conventional IgG antibodies for stimulating cell surface receptors.

Engineered IgM antibodies are a new class of potential therapeutics that combine the multi-valency of IgM antibodies possessing 10 binding sites compared to conventional IgG antibodies having only two target binding sites.

Terms call for Mountain View, California-based IGM to receive a $150 million upfront payment from Sanofi, with the French company also having an option to acquire $100 million of IGM non-voting common stock in a public financing. Potentially, more than $6 billion in aggregate development, regulatory and commercial milestones are in play.

For each of the three oncology targets, IGM will lead research and development activities and assume related costs through to approvals in the US or EU, with the French partner paying $940 million in development and regulatory milestones per oncology target.

After receipt of the first marketing approval for a product directed to an oncology target, Sanofi will lead all subsequent development and commercialization activities for that target. The companies will share profits equally in certain major markets, and IGM will be eligible to receive tiered royalties on net sales in the rest of world.

For each immunology/inflammation target collaboration program, IGM will lead R&D and development activities and assume related costs through to the completion of Phase 1 clinical trial for up to two constructs directed to each immunology/inflammation target. After this, Sanofi will be responsible for all future development and related costs, receiving from IGM up to $1.1 million in aggregate development and regulatory and commercial milestones per immunology/inflammation target.

Following the completion of Phase 1 clinical trial for each immunology/inflammation target, Sanofi will be responsible for subsequent development activities, commercialization efforts, and related costs. IGM is eligible to receive tiered high single-digit to low-teen royalties on global net sales.

Closing of the collaboration is contingent on completion of review under antitrust laws, including the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976 in the US, along with and customary closing conditions.

Author: Dede Williams, Freelance Journalist