As part of the deal, Johnson & Johnson Innovation – JJDC will provide upfront payment and equity investment for engine, in addition to R&D funding.
The deal will also allow enGene to secure various pre-clinical, clinical, regulatory and commercialization success-based milestone payments up to a total of C$441m ($339m), as well as tiered royalties on potential net sales of products.
enGene co-founder and CEO Dr. Anthony Cheung said: "We are thrilled to enter into this collaboration with Janssen and Johnson & Johnson Innovation because it will accelerate clinical development of our unique gene delivery platform for the gut.
"This alliance represents a significant opportunity for us to develop an entirely new class of transformative therapies for IBD and other diseases."
The partnership will provide Janssen with the option to exclusively license enGene’s lead product candidate, EG-12, for gut-localized expression of the anti-inflammatory cytokine IL-10.
Both firms will jointly develop EG-12 through to clinical proof of mechanism in patients with IBD.
Janssen will take care of further clinical development and commercialization of EG-12 for all indications across the globe, upon exercise of its option.
In addition, the deal will enable Janssen to research the therapeutic potential of enGene’s platform to deliver one additional undisclosed target.