Pipeline Therapeutics Enters into Global License and Development Agreement with Janssen
Gunderson Dettmer represented client Pipeline Therapeutics, a clinical-stage biopharmaceutical company, to enter into a global license and development agreement with Janssen Pharmaceutica NV (Janssen) for the investigational compound, PIPE-307 to treat nervous system disorders.
Under the terms of the agreement, Pipeline will grant Janssen a worldwide, exclusive license to research, develop and commercialize PIPE-307 in all indications. Pipeline will have the right to continue to advance PIPE-307 for the treatment of relapsing-remitting multiple sclerosis (RRMS).
Pipeline will receive $50 million in an upfront payment from Janssen and separately up to $25 million in an equity investment from Johnson & Johnson Innovation. Pipeline is also eligible to receive approximately $1 billion in success-based payments including clinical, regulatory and commercial milestones, as well as tiered double-digit royalty payments, which increase if the co-development option for PIPE-307 is exercised by Pipeline.
In the announcement of the agreement, Pipeline’s president and CEO Carmine Stengone said, “We are excited to announce this agreement, which is aligned with our vision to maximize the reach of PIPE-307 through clinical evaluation in RRMS and other neurological disorders. In addition, we are pleased that we will strengthen our financial position with the upfront payment from this agreement and equity investments from existing and new investors, enabling us to extend our runway and to continue advancing our portfolio in small molecule neuroregeneration.”
The Gunderson Dettmer deal team was led by Brendan McCarthy and included Jeff Thacker, Gregory Kinzelman and Alex Lee.