As part of the collaboration, the companies will co-develop Bifunctional HER2-Sialidase, which is currently in preclinical development stage, and a second bifunctional sialidase that is to be developed with Henlius’ proprietary target.
The two therapies will be developed using Palleon’s Enzyme-Antibody Glyco-Ligand Editing (EAGLE) immuno-oncology platform which potentiates antitumour immunity by removing immunosuppressive sialic acids enzymatically from the surfaces of tumour and immune cell.
Palleon stated that the Bifunctional HER2-Sialidase has demonstrated potential in treating HER2-low and HER2-high expressing tumours with moderate to high levels of tumour surface sialoglycans.
The candidate will enter the IND-enabling studies.
Palleon CEO and founder Jim Broderick said: “We’re very pleased to partner with Henlius to develop and expand Palleon’s pipeline to realise the potential of bifunctional sialidases as a treatment option for a wide range of cancer types.
“Henlius has a strong track record of providing ground-breaking and cost-effective medicines for patients in China, and the development of these two therapeutic candidates will benefit from their expertise and capabilities.”
Under the deal, the company will be responsible for the research and later Palleon and Henlius will share preclinical and global clinical development responsibilities as well as the costs for both the therapies.
As per the terms of the agreement, Henlius will have the exclusive license for both the investigational therapies in China, including Macau, Taiwan and Hong Kong.
Palleon will retain all the other global rights and will receive a royalty-bearing exclusive license to Henlius’ antibody technology outside China for the second product.
The company also received an upfront payment and is eligible for up to $196.5m in certain commercial milestone payments along with the royalties after commercialisation of the products in China.