Jennerex and Transgene have entered into an exclusive partnership to develop and commercialise a promising new cancer drug known as JX-594.

JX-594, Jennerex’s lead cancer product, had demonstrated anti-cancer activity and a well-tolerated safety profile in Phase I and II clinical trials. The objective tumour response has been observed in was seen in a variety of cancers, including liver, colon, lung, kidney, and melanoma.

Under the partnership, Transgene will have exclusive rights to develop and commercialise JX-594 in Europe, the Commonwealth of Independent States and the Middle East.

Transgene has made an upfront equity investment in Jennerex as a part of the agreement, and Jennerex is eligible to earn to $116m in development and registration milestones, including double digit royalties, on a tiered structure.

The development of JX-594 will initially focus on hepatocellular carcinoma and colorectal cancer. The companies plan to start a randomised and controlled Phase IIb/III clinical programme in hepatocellular carcinoma patients, and a Phase II study in colorectal cancer patients.