Cell therapy company SQZ Biotechnologies has expanded its deal worth up to $1bn with Roche for the development and commercialisation of immune-oncology products.

SQZ and Roche initially partnered in 2015 to formulate drugs from peripheral blood mononuclear cells (PBMCs). The alliance combines SQZ cell therapy innovation with Roche’s cancer immunotherapy expertise.

The partners will now focus on certain antigen presenting cells (APCs)-based products developed using the SQZ platform. These APCs use native immune functions to stimulate target-specific killer (CD8) T cell responses in vivo.

SQZ APCs can directly trigger the CD8 T cell activity in terms of the presentation of antigens on MHC-I. They can also potentially exhibit anti-tumour effects by targeting antigens inaccessible by other adoptive cell-based cancer immune therapies.

The engineering and manufacturing process for these APCs does not require cellular expansion or genetic modification with viruses or editing agents. This improves the anticipated safety profile as well as reduces production time and cost.

“We have an ambitious scientific and clinical vision to create transformative cell therapies at SQZ, and we believe our alliance with Roche will yield novel therapeutics for cancer patients.”

SQZ Biotechnologies founder and CEO Armon Sharei said: “We believe that this new expanded collaboration accelerates our ability to bring a broad range of impactful oncology products to market.

“We have an ambitious scientific and clinical vision to create transformative cell therapies at SQZ, and we believe our alliance with Roche will yield novel therapeutics for cancer patients.”

According to the partnership, Roche will make up to $125m upfront and near-term milestone payments to SQZ, which is also eligible for more than $1bn in development milestone payments.

The company may also receive additional $250m clinical, regulatory and sales milestones per product resulting from the alliance. SQZ and Roche could share commercial rights for some of the approved products.