Oncology is driving some big deals, no question about it. More than 350 deals have had targets involved in some form of oncology program or drug since 2012. In the first week of October alone, we saw three deals targeting some form of oncology treatment. The one with the largest potential pay-off was announced between Amgen Inc. (NASDAQ: AMGN) and CytomX Therapeutics, Inc. (NASDAQ: CTMX). The deal has potential value of more than $1.5 billion.
In this strategic collaboration, the companies will co-develop a CytomX Probody™ T-cell engaging bispecific against the Epidermal Growth Factor Receptor (EGFR), a highly validated oncology target expressed on multiple human cancer types. Probody T-cell engaging bispecifics are antibody constructs capable of directing cytotoxic T-cells in tumor microenvironments.
Amgen will make an upfront payment of $40 million and purchase $20 million of CytomX common stock. CytomX will be eligible to receive up to $455 million in development, regulatory and commercial milestones for the EGFR program.
Amgen will lead global commercial activities with CytomX able to opt into a profit share in the United States and receive tiered, double-digit royalties on net product sales outside of the U.S. Amgen will also receive exclusive worldwide rights to develop and commercialize up to three additional, undisclosed targets.
If Amgen pursues all of these targets, CytomX will be eligible to receive up to $950 million in additional upfront and milestone payments and high single-digit to mid-double digit royalty payments on any resulting products.
CytomX will also receive the rights from Amgen to an undisclosed preclinical T-cell engaging bispecific program; Amgen is eligible to receive milestones and royalty payments on any resulting products from this CytomX program.
