Syncona has announced that its portfolio company Quell Therapeutics has signed a collaboration agreement with AstraZeneca to develop, manufacture and commercialise autologous, engineered Treg cell therapies for two autoimmune disease indications.
Under the agreement, Quell’s proprietary toolbox of Treg cell engineering modules, including its Foxp3 Phenotype Lock, will be used to develop autologous multi-modular Treg cell therapy candidates for both type 1 diabetes and inflammatory bowel disease. AstraZeneca will have the option to further develop and commercialise successful candidates, with Quell responsible for the process development and manufacturing of clinical candidates through to the end of the first-in-human clinical study.
Quell will continue to retain full ownership of its lead programme QEL-001, which is a Treg cell therapy candidate being developed for liver transplant patients to prevent organ rejection and the life-long need for immunosuppression.
Quell will receive $85m upfront from AstraZeneca which comprises a predominant cash payment and an equity investment. In addition, Quell will be eligible to receive potential payments totalling over $2bn, contingent on successfully reaching developmental and commercial milestones, plus tiered royalties. In addition, Quell retains an option, which can be exercised either after approval of an Investigational New Drug (IND) application or at the end of the Phase I/II clinical study, to co-develop Treg cell therapies from the type 1 diabetes programme with AstraZeneca in the United States in exchange for additional milestone payments and increased royalties on US net sales.
Following the signing of the agreement, Syncona’s ownership stake in Quell is 33.7%, whilst the valuation for this holding is unchanged at $107m (£86.7m).
SYNC : Syncona’s Quell announces AstraZeneca deal