Servier cuts off collaboration agreement with Allogene on CD19 products, sending shares sputtering – Endpoints News

Al­lo­gene Ther­a­peu­tics said in an SEC fil­ing to­day that French part­ner Servi­er has cut off its in­volve­ment in a part­ner­ship de­vel­op­ing ther­a­pies di­rect­ed against CD19, in­clud­ing the most ad­vanced can­di­dates in Al­lo­gene’s pipeline.

Shares of Al­lo­gene $AL­LO, an out­fit run by Kite vets Arie Bellde­grun and re­search chief David Chang, fell by al­most 10% on Wednes­day, even as the San Fran­cis­co-based com­pa­ny said that Servi­er’s dis­con­tin­u­a­tion “does not oth­er­wise af­fect our cur­rent ex­clu­sive li­cense for the de­vel­op­ment and com­mer­cial­iza­tion of CD19 Prod­ucts in the Unit­ed States.”

Cut­ting of Servi­er will al­so al­low Al­lo­gene to li­cense these CD19 prod­ucts — AL­LO-501, AL­LO-501 and UCART19 — out­side of the US, with mile­stones of up to €46 mil­lion ($45 mil­lion).

Ex­er­cis­ing that ex-US op­tion, how­ev­er, which Servi­er wants done quick­ly, would cut off Al­lo­gene’s abil­i­ty to re­cov­er from Servi­er 40% of the de­vel­op­ment costs for CD19 prod­ucts.

Part of the rea­son for this sep­a­ra­tion may be Servi­er’s on­go­ing CD19-re­lat­ed col­lab­o­ra­tion with Cel­lec­tis. Un­der a 2014 deal, Cel­lec­tis re­ceived $10 mil­lion up­front and was el­i­gi­ble for up to $140 mil­lion to de­vel­op six prod­uct can­di­dates.

And while Servi­er has al­so cut off its work with Al­lo­gene, Cel­lec­tis “has chal­lenged cer­tain per­for­mance by Servi­er and has al­so chal­lenged the abil­i­ty of Servi­er to grant a world-wide sub­li­cense,” Al­lo­gene said in the SEC fil­ing.

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