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September 17, 2015

King & Spalding Advises Nurix in $150 Million-Plus Drug Collaboration and Option Deal with Celgene

PALO ALTO, Sept. 17, 2015 — King & Spalding advised Nurix, Inc. on a strategic collaboration with Celgene Corp. for the discovery, development and commercialization of novel drug therapies in the fields of oncology, inflammation and immunology, including the rapidly evolving field of immuno-oncology.

Under the terms of the collaboration, announced yesterday, Celgene will make an upfront payment to Nurix of $150 million, plus an undisclosed equity investment, for an option to license future drug therapies, with the ability to extend the option-to-license term for additional payments. Celgene may license global development and commercialization rights to a drug therapy program in exchange for an option fee, potential clinical, regulatory and sales milestone payments totaling up to $405 million, as well as future tiered single-digit to low double-digit royalties on global sales.

Celgene will have worldwide rights to collaboration products — with the exception of certain collaboration products for which Nurix retains U.S. development and commercialization rights — including the opportunity for the companies to co-develop and co-commercialize up to two drug therapy programs in the U.S., with Celgene retaining rights outside the U.S. in exchange for an option fee, milestone payments and royalties on sales outside of the U.S., on a program-by-program basis. 

The King & Spalding team included Silicon Valley-based partner Tom Duley and senior associate Stephen Abreu, both of whom are corporate lawyers focused on the life sciences industry. Additional assistance was provided by partners Elaine Tseng and John Sweet, counsel Brian Meiners, and associates Longbo Wang and Stephanie Levin.

This deal is the latest significant transaction for King & Spalding's Silicon Valley Life Sciences team. In the last year, the firm advised Five Prime Therapeutics in two licensing deals, advised Nivalis Therapeutics on its $88 million initial public offering, and handled numerous other financings and partnering transactions.

About King & Spalding
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