Eleven Biotherapeutics Inc (NASDAQ:EBIO)(EBIO), a renowned biopharmaceutical firm involved in discovering and development of protein therapeutics used in the treatment of eye related disease, has announced that it plans to enter into an exclusive license agreement with F. Hoffmann-La Roche Ltd and Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY)in relation to Eleven’s Interleukin-6 otherwise known as simply IL-6 technology.
Under the terms of this agreement, EBIO agreed to offer an exclusive, global license to Roche for the development and commercialization of EBI-031 which is a humanized monoclonal antibody that binds the IL-6 technology thus inhibiting any form of IL-6 cytokine signaling which is currently under development for use in ocular diseases treatment among other IL-6 harmful antibody technology by Eleven.
The agreement also states that Eleven is entitle to an upfront payment of $7.5 million coupled with a potential future milestone payment amounting to $262.5 million. This milestone payment is dependent on the effectiveness of the effectiveness of the investigational new drug for the EBI-031. The initial milestone payment will amount to $22.5 million is the investigational new drug is effective after September 15 later this year.
Additionally, Eleven will stand to receive royalties for the net sales of the potential future products featuring the EBI-031 or other potential products in the future that will contain other Eleven IL-6 compounds. The effectiveness of this license agreement is dependent on the approval of the license by the holders of a majority of the remaining shares of the common stock by Eleven.
The President and Chief Executive Officer of Eleven Abbie Celniker, said that the company was excited about the news of the submission of and IND for the EBI-031. Celniker further went on to add that they were happy to have Rochie ready to further the IL-6 development and ultimately benefit patients. As previously announced, Celnikersaid that Eleven will continue evaluating any other strategic alternatives with an intention of maximizing the shareholder value.
Celniker pointed out that the IND was under review by the FDA and that they were ready to provide further details regarding the development of the EBI-031 as a likely treatment option for eye ailments including macular edema and uveitis.
