Benzinga | Jun 16, 2021 07:33AM EDT

MacroGenics And Zai Lab Enter Collaboration To Develop And Commercialize Preclinical Bispecific Antibodies in Oncology; MacroGenics To Receive Initial Consideration Of $55M, An Equity Investment And Is Eligible For $1.4B In Milestones

* Zai Lab granted combination of regional Asian and global rights for up to four CD3- or CD47-based bispecific molecules

* MacroGenics provides rights to Zai Lab for its DART(r) and TRIDENT(r) multi-specific platforms and a lead research program targeting solid tumors

* Zai Lab provides rights to MacroGenics for certain intellectual property related to CD47 for select tumor targets

ROCKVILLE, MD, SHANGHAI and SAN FRANCISCO, June 16, 2021 (GLOBE NEWSWIRE) --

MacroGenics (NASDAQ:MGNX), a biopharmaceutical company focused on developing and commercializing innovative monoclonal-antibody-based therapeutics for the treatment of cancer, and Zai Lab Limited (NASDAQ:ZLAB, HKEX: 9688))))), an innovative commercial-stage biopharmaceutical company, announced today that the companies have entered into an exclusive collaboration and license agreement involving up to four immuno-oncology molecules.

The first collaboration program covers a lead research molecule that incorporates MacroGenics' DART platform and binds CD3 and an undisclosed target that is expressed in multiple solid tumors. The next-generation CD3 component of the DART bispecific molecule has been designed to minimize cytokine-release syndrome while maintaining anti-tumor cytolytic activity. The second collaboration program will cover a target to be designated by MacroGenics. For both molecules, Zai receives commercial rights in Greater China, Japan, and Korea and MacroGenics receives commercial rights in all other territories. For the lead molecule, Zai Lab receives an option upon reaching a predefined clinical milestone to convert the regional arrangement into a global 50/50 profit share.

Zai Lab also obtains exclusive, global licenses from MacroGenics to develop, manufacture and commercialize two additional molecules. For the four programs, each company will contribute intellectual property to generate either CD3- or CD47-based bispecific antibodies.

"We are very pleased to be expanding our existing relationship with Zai Lab, which already includes regional rights in Greater China for two clinical-stage programs," said Scott Koenig, M.D., Ph.D., President and Chief Executive Officer of MacroGenics. "Zai has a strong track record of rapidly progressing the development of innovative product candidates in China. This new partnership enables us to jointly discover, develop and deliver potentially best-in-class therapeutics to address patients' unmet medical needs."

"MacroGenics has been a great partner and one of the leading companies in the immuno-oncology field," said Samantha Du, Ph.D., Founder, Chairperson, Chief Executive Officer of Zai Lab. "We are pleased to expand our strategic collaboration, which leverages both companies' unique research capabilities and gives Zai Lab access to MacroGenics' proprietary technologies to expand our innovative oncology portfolio on a global basis."

Under the terms of the agreement, MacroGenics receives initial consideration from Zai Lab of $55 million, including an upfront payment of $25 million and an equity investment of $30 million in MacroGenics' common stock at $31.30 per share. In addition, MacroGenics is eligible to receive up to $1.4 billion in potential development, regulatory and commercial milestone payments for the four programs. If products from the collaboration are commercialized, MacroGenics would also receive royalties on annual net sales in Zai Lab's territories.