SAN FRANCISCO, Jan. 9, 2018 — King & Spalding advised Delaware-based biopharmaceutical company Incyte Corp. on a target discovery, research collaboration and option agreement with Syros Pharmaceuticals, Inc.
Under the agreement, Syros will use its proprietary gene control platform to identify novel therapeutic targets with a focus in myeloproliferative neoplasms (MPNs), and Incyte will receive options to obtain exclusive worldwide rights to intellectual property resulting from the collaboration for up to seven validated targets. Incyte will have exclusive worldwide rights to develop and commercialize any therapies under the collaboration that modulate those validated targets.
Under the terms of the agreement, Incyte will pay Syros $10 million upfront — including $2.5 million in cash and $7.5 million in prepaid research and development (R&D) — and purchase a total of $10 million in Syros common stock at $12.61 per share.
Should Incyte exercise all of its options under the agreement, Syros could receive up to $54 million from Incyte in target selection and option exercise fees. For products resulting from the collaboration against each of the up to seven selected and validated targets, Syros could receive up to $50 million in development and regulatory milestones, as well as up to $65 million in commercial milestones. Syros would also be eligible to receive low single-digit royalties on sales of products resulting from the collaboration. More information on the deal can be found here.
The King & Spalding team on this deal was led by San Francisco partner Tom Duley and included counsel Stephen Abreu (San Francisco) and counsel Jen DePalma (Silicon Valley).
King & Spalding advises pharmaceutical, biotechnology, medical technology and other clients in the life sciences industry at all stages of their development and in connection with a wide variety of strategic corporate transactions. In 2017, the Recorder named Duley a Trusted Advisor in recognition for his work advising life sciences companies, and LMG Life Sciences named him a Life Sciences Star. Law360 also named King & Spalding’s team a Life Sciences Practice Group of the Year.
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