German biotechs in oncology alliance
This article was originally published in Scrip
The German biotechnology firms 4SC Discovery and BioNTech have entered a second oncology partnership in as many months.
4SC Discovery will work to identify new small molecule anticancer drugs for defined therapeutic targets put forward by BioNTech and optimize these. BioNTech is planning to conduct preclinical testing and bring compounds to the clinical development stage.
4SC transferred most of its early-stage research activities to the 100%-owned subsidiary just over a year ago (scripintelligence.com, 14 December 2011). "We are convinced this new business model addresses the current trends in the pharma industry to collaborate more in early stage R&D," Dr Ulrich Dauer, CEO of parent company 4SC, told Scrip at the time.
The latest partnership between the companies is scheduled to run for three years, and four separate projects are already underway, they said. Under the terms, BioNTech will pay 4SC Discovery a cost-based service fee as well development and sales milestones plus royalties on any sales.
In December 2012, 4SC Discovery and BioNTech signed a license agreement for 4SC Discovery's TLR agonists for use in cancer immunotherapy. Under the agreement, 4SC Discovery received an upfront payment of €2.5 million from BioNTech and is entitled to milestones and royalties. In return, BioNTech received an exclusive license for the worldwide marketing and commercialization rights to the TLR agonists.
Dr Dauer said: "This collaboration brings us closer to our goal of generating a positive operating cash flow with 4SC Discovery as early as this year. Moreover we are pleased to be able to benefit from the possible continued success of the compounds we have co-researched, thereby increasing the potential to further boost 4SC's enterprise value in the future."