Maxygen and Cangene have entered into an agreement in May 2009, under which Maxygen received from Cangene a non-refundable option fee of $500,000.
As per the terms of the agreement, Cangene received an exclusive license option to Maxygen’s proprietary MAXY-G34 protein therapeutic for use in treating acute radiation syndrome (ARS).
Maxygen and Cangene said that the expiration is a result of the decision by the Biomedical Advanced Research and Development Authority (BARDA), an agency within the US Department of Health and Human Services, to eliminate Cangene from the competitive range with respect to its bid on a contract for developing a treatment for ARS.
Had Cangene been awarded the government development contract and exercised the option, Maxygen would have been eligible to receive additional payments from Cangene, including licensing fees and a specified percentage of any net contract revenues recognised by Cangene under the government contract.
As a result of the expiration, Maxygen is no longer eligible for any further payments under the agreement.
Maxygen said that it continues to retain all rights to MAXY-G34 for commercial development of all therapeutic areas, including all rights for chemotherapy-induced neutropenia and ARS indications.