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AbCellera Biologics Enters Lucrative Collaboration with Jazz Pharmaceuticals

Jazz Pharmaceuticals and AbCellera have entered a preclinical collaboration focused on next-generation T-cell engaging multispecific antibodies for gastrointestinal cancers and other solid tumors.

The deal gives AbCellera $56 million in upfront payments tied to the first two research programs, plus another $28 million when the third program begins. In total, the collaboration covers two initial programs immediately, with a third discovery program to start within 12 months. Jazz also has the option to add up to two more programs later.

If Jazz exercises its option on a program, AbCellera could receive up to $792 million per program in option fees and development, regulatory, and commercial milestone payments, along with tiered royalties ranging from the mid-single digits to the low double-digits on net sales.

Under the agreement, Jazz gets the exclusive worldwide right to develop and commercialize each program after exercising its option and paying the option fee. As a result of these announcements, the company's shares have moved 6.09% on the market, and are now trading at a price of $5.40. For the full picture, make sure to review AbCellera Biologics's 8-K report.

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