Takeda Pharmaceuticals Announces Multi-Target Collaboration Up to $1.2 Billion with Degron Therapeutics

Ropes & Gray advised Takeda Pharmaceuticals in a collaboration and exclusive license agreement with Degron Therapeutics to discover and develop novel molecular glue degraders for multiple targets in oncology, neuroscience and inflammation. The transaction was announced on May 23.

Takeda and Degron will collaborate to use Degron’s GlueXplorer platform to identify, validate and optimize molecular glue degraders for therapeutic targets selected by Takeda. Upon reaching certain stages, the project would transition to Takeda for further development and commercialization. Molecular glue degraders are a new class of protein degradation drugs that can be directed at targets previously inaccessible or inadequately treated with other methods.

Under the agreement, Degron Therapeutics will receive an upfront payment and is eligible to receive potential future preclinical, clinical development and commercial milestone payments up to $1.2 billion if milestones are achieved. Degron is also eligible to receive tiered royalty payments on sales of any potential commercialized products. The parties have the option to expand the collaboration to include more targets. In addition, Takeda will make an equity investment in Degron. Degron will retain full ownership of its pipeline programs.

The Ropes & Gray team included life sciences licensing partner Hannah England, life sciences licensing associate Ian Nilsen and life sciences licensing partners Raj Banerjee and Katherine Wang.