Alexion, Zealand to Collaborate on Peptide Therapies

By Chris Wack

Alexion Pharmaceuticals Inc. (ALXN) and Zealand Pharma A/S (ZEAL) said Wednesday that they were collaborating to discover and develop novel peptide therapies for complement-mediated diseases.

The companies said in a release that the agreement provides Alexion with exclusive worldwide licenses, as well as development and commercial rights, for up to four targets within the complement pathway.

Under the terms of the agreement, Alexion and Zealand will enter into an exclusive collaboration for the discovery and development of subcutaneously delivered peptide therapies directed to up to four complement pathway targets.

Zealand will lead the joint discovery and research efforts through the preclinical stage, and Alexion will lead development efforts beginning with IND filing and Phase 1 studies.

The agreement provides Alexion with exclusive worldwide licenses and commercial rights to the peptide therapies developed in the collaboration. Zealand will receive an immediate upfront payment of $25 million for the first target, with Alexion making a concurrent $15 million equity investment in Zealand Pharma at a premium to the market price as of the collaboration effective date.

For the lead target, the agreement provides the potential for development-related milestones of up to $115 million, as well as up to $495 million in sales-related milestones and the potential for high single- to low double-digit royalty payments. Each of the three subsequent targets can be selected for an option fee of $15 million and has the potential for additional development milestones and sales milestones and royalty payments at a reduced price to the lead target.

Shares of Zealand were halted at $15.65 premarket.

Write to Chris Wack at chris.wack@wsj.com

(END) Dow Jones Newswires

March 20, 2019 07:29 ET (11:29 GMT)

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