Garvan spin-off in $137m anti-inflammatory deal

G2 Therapies, a spin-off company from Sydney's Garvan Institute of Medical Research, has signed a licensing agreement worth up to AUD$137 million with Denmark's Novo Nordisk to develop, manufacture and commercialise new anti-inflammatory therapies based on G2's C5a receptor antibodies.

The agreement -- involving G2 subsidiary G2 Inflammation -- includes a $8.10 million up-front payment and other milestone based payments to a potential total of $137 million, plus royalties on commercialised therapeutics. Additionally, Novo Nordisk will pick up G2's expense tab.

"We are delighted -- it is one of the largest and most significant deals achieved by any Australian biotech and positions G2 for growth," said G2 Therapies CEO Stephen Conlon. "We will be looking at adding several new programs, recruiting staff like mad and building on this program."

The antibodies licensed under the agreement were first developed by Prof Charles Mackay at the Garvan Institute. Anti-C5a receptor therapies have potential application in several important indications, including rheumatoid arthritis and other autoimmune diseases.

"We anticipate that our antibody will be a significant improvement over current therapies because it acts at a different and earlier point in the inflammatory process compared with current anti-inflammatory therapies," Mackay said. Conlon said the deal was a collaboration to jointly develop what both parties see as a potential blockbuster inflammatory drug, and would involve G2 for years.

"There is a significant know-how transfer from Novo Nordisk and we can develop these skills to other programs," he said. "We are about two years from clinical trials.

"We believe this therapy will have applicability to a wide range of indications, including rheumatoid arthritis, psoriasis, lupus, and potentially asthma. There are also some acute indications such as stroke and transplant reperfusion injury."