Covagen, TRL expand research collaboration to generate bispecific FynomAb

Covagen and Tanabe Research Laboratories U.S.A, Inc. (TRL), a fully owned subsidiary of Mitsubishi Tanabe Pharma Corporation (MTPC), today announced that they expanded their strategic research collaboration. MTPC and TRL have nominated a first bispecific FynomAb for formal preclinical development which triggered an undisclosed milestone payment. MTPC and TRL also exercised an option for a second bispecific FynomAb program based on the parties' research and licensing agreement signed in October 2012. Under the agreement, Covagen will use its proprietary Fynomer-antibody platform to generate bispecific antibodies (FynomAbs) against a second target pair selected by TRL and MTPC.

"We believe Covagen's FynomAb platform is a source of innovative bispecific antibodies with excellent biophysical properties that will allow more effective treatment of inflammatory and oncologic diseases," said Roland Newman, Ph.D., chief scientific officer of TRL. "We look forward to continuing our cooperative work with the Covagen team as we advance the first FynomAb into preclinical development and look towards discovery of the second FynomAb as part of this expanded collaboration."

Through payment of an undisclosed option fee, MTPC secured global, exclusive rights to bispecific FynomAbs against a second target pair in oncology. Under the agreement, MTPC will fund all research activities and be solely responsible for the development, manufacturing and global commercialization activities. Upon achievement of certain research, development and regulatory milestones, Covagen is entitled to receive payments of up to €108.25 million for the second program as well as tiered royalties on worldwide net sales of products resulting from the collaboration.

"The expansion of our collaboration with MTPC and TRL provides substantial validation of Covagen's bispecific FynomAb technology as we advance several therapeutic programs toward the clinic in 2014 and 2015," said Julian Bertschinger, Ph.D., chief executive officer of Covagen.

Dragan Grabulovski, Ph.D., chief scientific officer of Covagen, added, "The expansion to a second bispecific FynomAb program is the result of the successful discovery and early preclinical development of the FynomAb from the original collaboration. This FynomAb was generated less than one year after initiating the joint research collaboration and showed excellent activity in pre-defined in vitro and in vivo studies. Our work with the MTPC and TRL team has been extremely productive, and we are eager to continue development of both projects."