MorphoSys bets on Emergent BioSolutions' cancer contender in $183M deal

German drug developer MorphoSys is pairing up with Emergent BioSolutions ($EBS) to get its hands on an early-stage prostate cancer treatment, signing a deal worth up to $183 million for a promising antibody.

Under the agreement, MorphoSys will join the effort to develop ES414, a bi-specific antibody designed to redirect the body's T cells toward prostate cancer cells. In exchange for $20 million up front and up to $163 million in milestone payments, MorphoSys gets exclusive license to the drug outside the U.S. and Canada, where Emergent will hang onto rights. The two will split development costs 64-36, with MorphoSys picking up the lion's share, and rechristen the treatment MOR209/ES414.

The drug works by binding to both PSMA, an antigen found on prostate cancer cells, and CD3, a T cell receptor, thereby galvanizing a precise attack on malignancies and sparing healthy cells. Preclinical data both confirm that mechanism and suggest that the drug could beat out other candidates for metastatic castration-resistant prostate cancer, MorphoSys Chief Development Officer Arndt Schottelius said in a statement, and the partners plan to get rolling on a Phase I trial within the next 6 months.

"We believe MOR209/ES414 has the potential to be an important therapy for prostate cancer, where there is a pressing need for better treatments," Schottelius said in a statement.

The drug, developed using Emergent's Adaptir platform for protein therapeutics, is part of the company's growing non-biodefense pipeline, which includes the late-stage hemophilia B treatment trenonacog alpha and the Phase III leukemia drug otlertuzumab. The Maryland biotech is also developing three mid-stage treatments for anthrax with assistance from a few federal agencies.

For the busy MorphoSys, the oncology deal is the latest in a slew of antibody tie-ups, including an immunotherapy agreement with Merck KGaA, an $818 million blood cancer pairing with Celgene ($CELG) and a $579 million arthritis partnership with GlaxoSmithKline ($GSK).

- read the announcement