Celgene has entered a strategic collaboration to manufacture and market BeiGene’s protein 1 (PD-1) inhibitor, BGB-A317, for the treatment of patients with solid tumour cancers.

Under the deal, BeiGene will retain exclusive rights for the development and commercialisation of its investigational anti-programmed cell death PD-1 inhibitor to treat haematological malignancies worldwide and solid tumours in Asia, with the exception of Japan.

The company will buy Celgene’s commercial operations in China and receive an exclusive licence to commercialise its approved therapies, Abraxane, Revlimid and Vidaza in the country.

Celgene CEO Mark Alles said: “The acquisition of BGB-A317 significantly accelerates and expands our opportunity to develop and deliver novel T-cell checkpoint inhibitor-based therapies in solid tumour cancers to patients worldwide and adds to our ongoing PD-L1 FUSION programme in haematological malignancies.”

BGB-A317 is an investigational humanised monoclonal antibody designed to bind to PD-1, a cell surface receptor that helps in downregulating the immune system by preventing the activation of T-cells.

"Initial clinical data shows that BGB-A317 is well tolerated and demonstrates anti-tumour activity across a wide range of solid tumour types."

Initial clinical data shows that BGB-A317 is well tolerated and demonstrates anti-tumour activity across a wide range of solid tumour types.

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BGB-A317 is currently being developed as a monotherapy and in combination with other therapies for the treatment of solid tumour cancers.

The two companies will collaborate in the global development of BGB-A317, while BeiGene will retain the right to develop BGB-A317 in haematology and in combination with its other portfolio compounds.

Upon closing of the transaction, BeiGene will receive upfront licensing fees of $263m.

The company is eligible to receive up to $980m in the development, regulatory and sales milestone payments and royalties for future sales of BGB-A317.