Halozyme Therapeutics, Inc. (NASDAQ: HALO) has announced that argenx has identified four new targets under their global collaboration and license agreement. This agreement grants argenx exclusive access to Halozyme’s ENHANZE® drug delivery technology, which utilizes the proprietary recombinant human hyaluronidase PH20 enzyme (rHuPH20) for efficient subcutaneous drug delivery. As a result, argenx has now secured exclusive rights to use ENHANZE® for a total of six targets, including the neonatal Fc receptor (FcRn) target. The U.S. Food and Drug Administration has approved argenx’s VYVGART® Hytrulo, an FcRn blocker, for treating chronic inflammatory demyelinating polyneuropathy and generalized myasthenia gravis, with additional approvals in over 25 countries worldwide for the latter condition.
As part of the expanded exclusive agreement, argenx will make upfront payments totaling $30 million to Halozyme, which includes $7.5 million for each target nominated. Additionally, there are potential milestone payments related to development progress, regulatory approvals, and sales achievements, amounting to up to $85 million for each nominated target.
The royalty structure for all products under this agreement includes a tiered mid-single-digit rate based on annual net sales, which will continue until the expiration of Halozyme’s ENHANZE® related patents. After that, the rate will decrease in one or more phases. Royalties will be applicable for either 10 years from the first commercial sale or until the last valid claim of a co-formulation patent expires, whichever is longer.
Dr. Helen Torley, president and chief executive officer of Halozyme, expressed, “We are thrilled to strengthen our partnership with argenx, an innovative leader in immunology committed to improving the lives of individuals with severe autoimmune diseases. We share argenx’s patient-centric mission and are dedicated to enhancing patient outcomes. ENHANZE, as the leader in rapid subcutaneous drug delivery, has been clinically proven to reduce administration time, providing patients and healthcare practitioners with greater convenience and flexibility in therapy delivery. We eagerly anticipate supporting argenx’s momentum as they broaden their immunology pipeline through subcutaneous delivery of therapeutics, aligning with their Vision 2030.”
Tim Van Hauwermeiren, Chief Executive Officer of argenx, remarked, “We are excited to gain access to Halozyme’s leading subcutaneous delivery technology for six different targets. The expansion of our exclusive rights to ENHANZE is crucial in solidifying our leadership position and fulfilling our commitment to delivering transformative immunology solutions to patients.
