French biotechnology company Nanobiotix has entered into an agreement with J&J’s wholly-owned medical research and pharmaceutical arm Janssen to license, co-develop and commercialize a drug to treat head and neck cancer tumours, sending the company’s shares soaring.
The agreement relates to Nanobiotix’s radioenhancer NBTXR3 which is being evaluated in a Phase 3 study for the treatment of patients with locally advanced head and neck cancer and for its potential as a systemic agent in combination with anti-PD-1 immune checkpoint inhibitors for patients with metastatic cancers.
Nanobiotix will receive near-term cash and operational support valued at up to $60 million, including $30 million for licensing and $30 million for regulatory and development support, the company said in a statement.
The biotech firm is eligible to earn up to $1.8 billion in success-based payments related to development, regulatory, and sales-based milestones.
There is also a framework for additional milestone payments of up to $650 million for five new indications that may be developed by Janssen at its sole discretion and up to $220 million per indication developed by Nanobiotix in partnership with Janssen.
After commercialization, Nanobiotix will receive tiered double-digital royalties on the net sales of NBTXR3.
“We are delighted to collaborate with Janssen as we aim to improve the lives of patients with cancer around the world,” commented Nanobiotix chairman of the executive board Laurent Levy.
The company’s chief financial officer Bart van Rhijn added: “We look forward to maximizing the value of NBTXR3 for our global stakeholders.”
Nanobiotix stock was up 39.2% at US$7 at noon Monday following the announcement.
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