June 12, 2020
Swedish Orphan Biovitrum AB (publ) (Sobi™), a specialized international biopharmaceutical company and Selecta Biosciences, Inc., a clinical-stage biotechnology company, have announced that the companies have entered into a strategic licensing agreement for SEL-212. SEL-212, a phase 3 ready therapy, is a combination of Selecta’s tolerogenic ImmTOR immune tolerance platform and a therapeutic uricase enzyme (pegadricase) that is designed to durably control serum uric acid, reduce immunogenicity, and allow for repeated monthly dosing for the treatment of chronic refractory gout.
Under the terms of the agreement, Sobi will assume responsibility for development, regulatory, and commercial activities for SEL-212 in all markets outside of China. Sobi will make initial payments to Selecta of US$100 million, including US$75 million up-front license fee and US$25 million in a private placement of 5,416,390 shares of Selecta common stock at a purchase price of US$4.62 per share. Selecta is eligible to receive potential milestone payments of up to US$630 million from Sobi, which are dependent upon specific regulatory and development targets having been met, as well as sales thresholds. Additionally, Selecta is eligible to receive tiered double-digit royalties on net sales.
Latham & Watkins LLP represents Sobi. The licensing team was led by San Diego partner Steven Chinowsky and London associate Frances Stocks Allen, with London associate Oliver Mobasser and San Diego counsel Darryl Steensma, New York counsel Eliot Choy and San Diego associate Robert Yeh. The investment team was led by Orange Country partner Scott Shean, with Orange County associates Ross McAloon and Gregory Van Buiten. Advice was also provided on tax matters by Bay Area partner Kirt Switzer.