Astellas and PeptiDream have announced a research collaboration and licence agreement to discover novel protein degraders for two undisclosed targets selected by Astellas, with the deal potentially generating more than $290m in milestone payments.
Under the terms of the agreement, Astellas will have the option to select up to three additional targets and will be responsible for the development and commercialisation of products resulting from the collaboration.
The partnership will see PeptiDream’s Peptide Discovery Platform System (PDPS) technology merge with Astellas’ drug discovery capabilities to enhance the discovery of multiple next-generation protein degraders, targeting diverse targets that go beyond existing technologies.
Protein degrader drugs, which are designed to leverage the body’s natural recycling machinery to selectively eliminate disease-causing proteins, have been proposed as a way to address ‘historically undruggable’ targets.
Chief strategy officer at Astellas, Adam Pearson, said: “Targeted protein degradation is one of the primary focuses of Astellas.
“We hope this collaboration will bring synergies between the two companies’ cutting-edge research and will ultimately lead to the expansion of Astellas’ portfolio and development of new therapeutics for patients with significant unmet medical needs.”
Astellas will provide PeptiDream with an upfront payment of $21m, with PeptiDream eligible to receive around $146m in discovery, development and commercial milestones per target.
PeptiDream will also be eligible to receive single-digit percent royalty payments from net sales of any products that arise from the collaboration.
Keiichi Masuya, chief operating officer at PeptiDream, said: “We believe that through this research collaboration, we can leverage the strengths of both companies to advance the development of innovative drugs.”
The collaboration comes just over a month after Astellas and US start-up Cullgen announced a research collaboration and exclusive option agreement aimed at advancing targeted protein degraders, with the deal potentially worth up to $1.9bn.
PeptiDream also currently has over 11 pharma partners, including Bristol-Myers Squibb, Takeda and Novartis. Earlier this year, Eli Lilly and Merck & Co expanded their earlier alliances with PeptiDream, contributing up to $2.1bn and $1.2bn towards the programmes, respectively.