Summit, N.J.-based Celgene Corp. and Vividion Therapeutics Inc. entered a collaboration to discover potential therapies for cancer, inflammatory diseases and nerve diseases.
Under the four-year deal, the companies will identify and develop molecules that function through the ubiquitin proteasome system, which works by modifying protein levels to help treat certain diseases.
Celgene will pay San Diego-based Vividion $101 million up front, including an equity investment. Celgene also has the option to extend the deal for another two years for an additional payment.
Under the collaboration, Vividion will conduct initial discovery efforts and identify potential programs. Celgene will have the right to opt in on the programs when its investigational new drug applications are accepted by the U.S. Food and Drug Administration.
Celgene will have exclusive worldwide rights for certain programs, including the first one. For such programs, Vividion could potentially receive up to double digits in royalties on sales and milestone payments.
For other programs, the two companies will equally share development costs and commercialization profits and losses.
