Janssen Teams Up With Forma On Tumor Metabolism

Forma has garnered a deal with J&J subsidiary Janssen Pharmaceuticals to develop and commercialize treatments for tumor metabolism.

Forma Therapeutics Holdings LLC has vowed to stay independent, even while satisfying venture backers. Its latest tie-up with Johnson & Johnson subsidiary [Janssen Pharmaceutical Ltd.] will allow the company to develop innovative cancer treatments while eventually having a hand in the commercialization.

Forma announced Jan. 10 that it has signed an agreement with Janssen to discover, develop, and commercialize novel compounds based on the biotech’s tumor metabolism technology. Forma will discover and develop a panel of tumor metabolism targets. Janssen will pay an undisclosed upfront, as well as up to $700 million in development, regulatory, and commercialization milestones based on any candidates that result from the collaboration. Should certain milestones be achieved, Forma will have the opportunity to co-develop and maintain North American commercialization rights to a compound of Janssen’s choice. Forma expects a compound from the collaboration to enter the clinic within the next two years, but said that there is no definitive timeline.

The small molecule drug program is designed to starve tumor cells that are involved in cancer metabolism. Research in cancer metabolism has become of increasing interest to Big Pharma as further links to cancer and metabolism are uncovered (Also see "Biotechs Target Cancer Metabolism" - Scrip, 1 Sep, 2010.).

Retaining the option to commercialize one of the compounds in North America was a key part of the deal for Forma, said the company’s CEO Steven Tregay in an interview. He added that the deal with Janssen builds on other deals the biotech has been able to secure over the last year.

“This collaboration with Janssen Biotech further strengthens our drug discovery capabilities and also allows us to look to the future with an opportunity to maintain North American rights, which is a key element of our strategy to create long-term shareholder value within Forma.” said Tregay.

Partnerships Add Up

Just a few days prior to announcing its tie-up with Janssen, Forma announced a deal with Boehringer Ingelheim GMBH. In that collaboration, announced Jan. 5, Boehringer will pay Forma $65 million in upfront and near-term milestones and could eventually pay much more— up to $750 million in pre-commercial milestone payments as well as further payments if a drug reaches the market. The deal will identify oncology targets that affect protein-protein interactions (Also see "Boehringer, Forma Strike Discovery Deal In Oncology" - Pink Sheet, 5 Jan, 2012.).

In 2011, Forma garnered a partnership with Roche’s Genentech Inc. The companies didn't release any specifics of the terms of the deal, which they announced on June 27, but Genentech agreed to pay an upfront to obtain worldwide rights to one of Forma’s tumor metabolism programs. In addition, the licensor holds an option to acquire the program outright at a future development stage. If Genentech decides to go forward, it will pay Forma's investors in cash and cannot take an equity stake (Also see "Genentech Licenses A Cancer Metabolism Program From Forma, With Option To Buy" - Pink Sheet, 27 Jun, 2011.).

Genentech will shoulder the costs of development of the program, while Forma will receive milestone payments as work progresses. Should Genentech choose to take possession of the drug outright, in addition to the buyout payment, it would pay sales-based milestone payments. Forma, however, would not receive royalties. Tregay said that the recent deal with Janssen is very similar to the deal brokered with Genentech last summer.

Since its founding in 2008, the company has collected $33 million in venture capital from Lilly Ventures, Novartis Option Fund and Bio*One Capital Pte. Ltd. Prior deals with Eisai Co. Ltd., Cubist Pharmaceuticals Inc, Novartis AG, and Boehringer accounted for more than $100 million in upfront payments. Tregay said the company expects to earn as much as $2.5 billion in milestone payments over the next five years.