US-based pharmaceutical company Portola signed a collaboration and licensing agreement with biotechnology corporation Biogen Idec on Thursday with Biogen investing $45m in Portola upfront as part of the deal.
Under the terms of the agreement the firms will jointly develop treatments for autoimmune and inflammatory diseases including rheumatoid arthritis and lupus. Biogen’s upfront payment consists of $36m in cash and $9m in equity while milestone payments could potentially reach $508.5m.
Portola has previously signed commercial agreements with pharmaceutical conglomerates Merck and Novartis and, as of the Merck deal in 2009, had raised $220m in capital from financial services firm Goldman Sachs and a host of venture capital investors.
George A. Scangos, chief executive officer of Biogen Idec, said: "This program is an excellent strategic fit with our focus on immunology. Portola is a high-quality company with a great track record in small molecules, and we have crafted a collaboration that truly is a win for both companies."
Scangos continued: "We will now focus on a thoughtful and aggressive program to fully explore the potential of Portola’s compounds against this very interesting target, with the goal of creating an effective, safe and convenient oral treatment for patients with debilitating autoimmune and inflammatory diseases."