J&J Subsidiary Invests Big In Cancer Research

by | May 24, 2016 | Big Pharma Business | 0 comments

In the wake of two big legal losses for Johnson & Johnson (J&J), the company that has been accused of covering up evidence that its talc products cause cancer is now throwing the better part of a billion dollars into cancer research. How’s that for irony?

Janssen Biotech, a subsidiary of J&J, has entered into a second research and development partnership with biopharmaceutical company MacroGenics to develop a new cancer drug.

Janssen will pay MacroGenics up to $740 million to test and develop a preclinical drug called MGD015, which could be a breakthrough in cancer research

Janssen Invests $75 Million Upfront

Under the terms of the deal, Janssen will pay MacroGenics $75 million upfront for a license fee on the proposed drug. If the cancer research is successful and the drug moves into FDA approval, MacroGenics can earn up to $665 million more in incentives for reaching various downstream milestones like development and commercialization of a new drug.

MacroGenics Hacks Immune Cells to Attack Disease

MacroGenics specializes in research that pits the immune system against cancer cells. MGD015 is part of their proprietary Dual-Affinity Re-Targeting (DART) platform. A DART molecule is created with a structure similar to human antibodies. In theory, the DART molecule can direct other antibodies to attack the targeted disease cells.

Attacking Cancer With Bispecific Molecules

MacroGenics has created 100+ DART molecules which it hopes to test against cancers, infectious diseases, and autoimmune disorders. MGD015 is designed to attack cancer on two fronts:

    • Attacking solid tumors and blood cancers itself directly
    • Convincing the immune system’s T-cells to also attack the cancer

    Janssen’s Pharma Tech Specialties

    Janssen specializes in developing pharma tech for immunology, oncology, and nephrology. One of its most successful drugs is Remicade (infliximab), a treatment for arthritis, ulcerative colitis, Crohn’s disease, and severe psoriasis.

    Partnership Between Janssen & MacroGenics Started In 2014

    Janssen and MacroGenics first partnered in December 2014 with a similar drug on the DART platform called MGD011. The cancer research project was announced in December 2014 and could be worth $625 million to MacroGenics.

    Janssen paid $50 million upfront for MGD011 research, with the rest to be paid pending incentives and milestones. Human trials for MGD011 began in July 2015 and are currently ongoing.

    MacroGenics Also Working With Other Big Pharma Companies

    MacroGenics has also partnered with other big pharma companies:

      • Pfizer is collaborating with MacroGenics to develop a different DART cancer treatment.
      • US National Institute of Allergy and Infectious Diseases is testing DART candidates versus HIV infection.
      • Takeda is investing in multiple DART studies with undisclosed targets.