Celgene Acquires Stake in BeiGene : To help develop cancer Immunotherapy

Celgene wants a shot at a bigger slice of the global cancer drug market, and the company is turning to BeiGene to do it.

On Wednesday, Celgene acquired the worldwide rights to develop a PD-1 checkpoint inhibitor from Chinese biotech Beigene for use in patients with solid tumors.
BeiGene’s PD-1 inhibitor BGB-A317, is on track to start pivotal studies in solid-tumor cancers next year.

The financial terms of the deal are surprisingly lucrative for Beigene. The deal calls for Celgene to pay $263 million up front in licensing fees for global rights to BeiGene’s lead cancer drug in solid tumors. The latter keeps the right to develop and commercialize the drug in Asia, except for Japan, whose rights go to Celgene. If Celgene succeeds in developing the drug and commercializing it, the company could owe BeiGene as much as $980 million in milestone payments.

“This strategic partnership with Celgene is a transformational event for BeiGene, transitioning us into a commercial-stage company and preparing us well for the future potential launch of our internally developed compounds, some of which are already in pivotal trials in China,” stated John V. Oyler, BeiGene co-founder, CEO, and chairman.
BeiGene’s advanced clinical-stage investigational tumor cancer

treatment is a type of antibody that belongs to a class of immuno-oncology agents known as immune checkpoint inhibitors. The treatment has been tested in over 500 patients, with initial clinical data suggesting that it is well tolerated and exhibits anti-tumor activity across a range of solid tumor types, the companies said.

The candidate has already given up a big head start to rival checkpoint inhibitors from Bristol-Myers Squibb, Merck and the rest of the PD-1/PD-L1 pack.

“The acquisition of BGB-A317 significantly accelerates and expands our opportunity to develop and deliver novel T-cell checkpoint inhibitor-based therapies in solid-tumor cancers to patients worldwide and adds to our ongoing PD-L1 FUSION™ program in hematological malignancies,” Celgene CEO Mark J. Alles said in a statement.

Celgene also agreed to continue supporting BeiGene with management of Revlimid®’s risk minimization program, and BeiGene will gain an exclusive license to commercialize Celgene’s approved cancer therapies in China, including Abraxane® (paclitaxel protein-bound particles for injectable suspension)(albumin-bound), Revlimid (lenalidomide), and Vidaza® (azacitidine).