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here to printEpigenetics form epicenter of Genentech, Constellation agreement
01-17-2012
SHARING OPTIONS:
CAMBRIDGE, Mass.—Constellation Pharmaceuticals, Inc. and
Genentech, a member of the Roche Group, have announced the beginning of a major
strategic agreement to launch a broad collaboration based on epigenetics and
chromatin biology for the discovery and development of innovative treatments
for cancer and other diseases.
Per the agreement, Genentech will pay
Constellation $95 million in committed funding, which includes an upfront
payment and research funding for a three-year collaboration period. Additional
funding could come from substantial development and commercialization milestone
payments as well as up to double-digit royalties on commercial sales of
multiple products by Genentech. Constellation will retain exclusive development
and commercialization rights to selected programs that result from the
collaboration, for which the company will owe payments to Genentech based on
successful commercialization of said products.
“Genentech is a global leader in the research and
development of innovative medicines, and in combination with our class-leading
product engine and deep expertise in chromatin biology, we will create a
powerhouse dedicated to bringing the greatest benefit to patients from drugs
that modulate epigenetic pathways,” Mark A. Goldsmith, M.D., Ph.D., president
and CEO of Constellation, said in a press release. “This is a groundbreaking
partnership in terms of the structure, breadth and potential future clinical
impact of products created through our complementary capabilities. The
committed revenue and post-collaboration economics should provide a highly
attractive return for our investors.”
The research collaboration will deal with several epigenetic
target classes. Constellation will have independent strategic direction,
operational management and exclusive rights to programs that fall outside of
the scope of the collaboration, including its two most advanced programs
(focused on developing BET chromatin reader protein inhibitors and EZH2
chromatin writer protein inhibitors). Genentech, for its part, has a future
option to acquire all of Constellation’s outstanding shares based on previously
negotiated terms, including an initial acquisition payments and contingent
value rights payments based on the future development and successful
commercialization of multiple products by Genentech. If Genentech exercises its
option to acquire Constellation, it will also gain the BET and EZH2 programs in
addition to other programs outside the collaboration.
“We believe Constellation is a leading company in chromatin
biology and epigenetics drug discovery and an excellent partner for Genentech
in this area,” James Sabry, M.D., Ph.D., vice president of Genentech
Partnering, said in a press release. “With scientists committed to the
collaboration at both Constellation and Genentech working together in a highly
integrated way, our goal is to discover and ultimately bring to market
promising new therapies for patients with unmet medical needs in oncology, and
potentially other therapeutic areas.”
Constellation specializes primarily in the field of
epigenetics in the search for small molecule therapeutics for cancer,
inflammatory/immunologic disorders and other diseases. The company’s drug
discovery path focuses on “both the enzymes that modify the dynamic structure
of chromatin (writers and erasers) and other proteins that interact with
chromatin (readers) to control gene expression.”
SOURCE: Constellation Pharmaceuticals press release
Code: E01171201
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