China-based Zelgen Biopharm has entered into a strategic collaboration and option agreement with AbbVie for the global development and commercialisation of alveltamig, a novel trispecific T-cell engager (TCE) targeting DLL3. Under the agreement, AbbVie gains exclusive rights to develop and commercialise the product outside of Greater China, while Zelgen retains these rights within the region. Zelgen will receive an upfront payment of USD 100 million and is eligible for near-term milestone payments of up to USD 60 million.

Should AbbVie exercise its licensing option, Zelgen could receive additional milestone payments totalling up to USD 1.075 billion, plus tiered royalties ranging from high single-digit to mid-teen percentages on ex-China net sales. Alveltamig is currently in late-stage clinical development for small cell lung cancer (SCLC) and other DLL3-expressing malignancies. The candidate has received breakthrough therapy designation (BTD) in China and orphan drug designation (ODD) in the US. Zelgen will continue to lead the drug's development in Greater China through to registrational trials.

According to PharmCube's NextBiopharm® database, this marked the last of the 31 out-licensing deals between Chinese biotechs and Big Pharma companies. Click here to request a free trial for NextBiopharm®.