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Targovax grants IOVaxis option to license, develop 2 vaccines in certain regions

Targovax ASA agreed to grant IOVaxis Therapeutics an exclusive option to develop and license certain vaccines in China, Hong Kong, Macau and Singapore.

IOVaxis, a spinoff from ImmuOn Therapeutics, has the option to develop and license the TG01 and TG02 mutant RAS neoantigen vaccines.

TG01 and TG02 induce specific T-cell responses against RAS mutations in the tumor cells that can potentially kill cell lines and isolated tumor cells with the mutation.

The option can be exercised into an exclusive license by the earlier of the first regulatory approval to start a clinical trial in the territory or one year from the effective date of the agreement.

IOVaxis will make a payment to Targovax for this exclusive option. The milestone payment for the exercise of the option to license TG01/02 is $3 million.

The companies will work together to prepare a development plan for the vaccines in the regions. Moreover, IOVaxis will be responsible for all local regulatory filings and will sponsor the clinical trials.

Targovax will be eligible to receive up to $100 million in total potential development and commercial milestone payments as well as royalties on net sales up to mid-double digits after IOVaxis exercises the option.

The companies have yet to finalize the full license agreement but have outlined key commercial and operational terms in the option agreement, Targovax noted in its Jan. 8 press release.

Locust Walk was the adviser to Targovax for the option agreement.