Ropes & Gray Represents HotSpot Therapeutics in Global Strategic Collaboration with AbbVie
Ropes & Gray represented HotSpot Therapeutics in an exclusive, worldwide collaboration and option to license agreement with AbbVie for HotSpot’s new class of small molecule IRF5 modulators for the treatment of severe autoimmune diseases. The collaboration was announced on December 6th.
HotSpot's novel platform targets naturally occurring pockets on proteins critical to endogeneous regulation termed "natural hotspots." The technology can identify small molecules that bind to transcription factor IRF5 in a predictable way, opening up the possibility of drugging IRF5 and other disease targets previously undruggable.
Under the agreement, HotSpot will receive an upfront cash payment of $40 million and could receive up to $295 million in additional option fees and research and development milestones. Should AbbVie exercise its option to license, it will conduct all future clinical development and commercialization activities for the IRF5 inhibitor program. If AbbVie does not exercise the option, then HotSpot will conduct all future clinical development, manufacturing and commercialization for the program. HotSpot would have a one-time option to share in the research and development costs in exchange for an increase to the royalty payments.
The Ropes & Gray team was led by IP transactions partner David McIntosh, health care partner Margaux Hall and IP transactions associates Mallory Ursul and Ian Nilsen.