Alba, Shire agree on $325 million partnership to develop gastrointestinal treatments

BALTIMORE, Md. Alba Therapeutics and Shire have reached a licensing agreement to develop and market an investigational treatment for various gastrointestinal disorders that is worth more than $325 million, according to published reports.

The treatment is Alba’s lead compound, AT-1001, which is currently in midstage studies for Celiac disease, a gastrointestinal autoimmune disease. Under the terms of the gastrointestinal disorders deal, Alba will receive an initial, nonrefundable licensing fee of $25 million. The company is eligible to over $80 million if certain clinical, regulatory, and launch milestones are met for particular gastrointestinal indications. Shire will tender up to $220 million in sales-based milestones as well as tiered royalties. If the partnership extends beyond gastrointestinal disorders, Shire will make milestone payments totaling over $40 million per additional indication.

Development costs toward global approval of AT-1001 will be shared between the two companies, after the completion of the current midstage studies for Celiac disease.

Shire will receive rights to bring to market all forms of AT-1001 outside of the U.S. and Japan, while Alba will retain the rights to market AT-1001 in the U.S. and Japan.