Halozyme Therapeutics, Inc. (HALO) revealed on Thursday that argenx SE has identified four additional targets under their global collaboration and licensing agreement. This agreement grants argenx exclusive rights to Halozyme's ENHANZE drug delivery technology.
The ENHANZE drug delivery system utilizes a proprietary recombinant human hyaluronidase PH20 enzyme (rHuPH20), facilitating swift subcutaneous drug administration. Argenx, a Netherlands-based company specializing in immunology, now holds exclusive licenses for ENHANZE across six targets, including the neonatal Fc receptor (FcRn) target.
As part of this extended agreement, argenx will provide Halozyme with upfront payments totaling $30 million, at a rate of $7.5 million per designated target. Additionally, Halozyme stands to receive potential future milestone payments up to $85 million per target, contingent on developmental progress, regulatory approvals, and sales achievements.
The agreement stipulates a tiered mid-single digit royalty rate on annual net sales for all associated products. This rate is subject to reduction upon the expiration of Halozyme's ENHANZE-related patents, and will be sustained for the greater duration of either 10 years from the initial commercial sale or the expiration of the final valid co-formulation patent claim.
