Inovio Pharmaceuticals has signed a collaboration and licence agreement with AstraZeneca‘s biologics research and development arm MedImmune.

As part of the deal, MedImmune will purchase exclusive rights to Inovio’s INO-3112 immunotherapy, which targets cancers caused by human papillomavirus (HPV) types 16 and 18.

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Currently, the INO-3112 is in Phase I/II clinical trials for cervical and head and neck cancers and it works by generating killer T-cell responses that can destroy HPV 16- and 18-driven tumours.

MedImmune plans to study INO-3112 in combination with selected immunotherapy molecules within its pipeline in HPV-driven cancers.

"The unique combination of our broad immuno-oncology portfolio with Inovio’s T-cell-activating INO-3112 has the potential to deliver real clinical benefits for patients."

MedImmune oncology innovative medicines unit and senior vice-president Dr David Berman said: "The unique combination of our broad immuno-oncology portfolio with Inovio’s T-cell-activating INO-3112, which enhances cancer-specific killer T-cells, has the potential to deliver real clinical benefits for patients."

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Under the deal, Inovio will receive an upfront payment of $27.5m from MedImmune, in addition to potential future payments of up to $700m based on reaching certain development and commercial milestones.

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MedImmune will also fund all development costs, while Inovio is eligible to receive up to double-digit tiered royalties on INO-3112 product sales.

As part of the collaboration, both firms will develop up to two additional DNA-based cancer vaccine products that are not included in Inovio’s current product pipeline and MedImmune will have the exclusive rights to develop and commercialise these products.

Inovio will secure development, regulatory and commercialisation milestone payments, as well as eligible to receive royalties on worldwide net sales for these additional cancer vaccine products.

The current deal is based on the existing partnership between both the firms on two research and development collaborations in the infectious disease area.