Peregrine Pharmaceuticals entered into a development collaboration with Dios Therapeutics. Under the terms of the agreement, Peregrine will provide process development and manufacturing services and know-how to support early clinical development for Dios’ lead humanized mAb for the treatment of thyroid associated ophthalmopathy using its existing development and manufacturing capacity, once Dios provides Peregrine with its candidate.
In exchange for these development efforts, Peregrine has the option to convert its development fees into either cash or equity in Dios at a preferential conversion rate after Phase I trials. Peregrine also could receive a royalty on net product sales or Dios has the option to buy out the royalty obligation for a one-time fee, which could total up to $50 million. The buy-out option is exercisable anytime for a period up to two years after first commercial sale.
Under the terms of the agreement, Dios is responsible for all third-party expenses related to manufacturing process development as well as all preclinical and clinical trial costs.
“Even with increased demand for our manufacturing services from outside clients, we continue to seek attractive opportunities such as this to create value out of our existing manufacturing expertise and capacity," states David King, Peregrine's vp of business development.