Cue Biopharma enters collaboration, option agreement with Ono Pharmaceutical

Cue Biopharma (CUE) announced a collaboration and option agreement with Ono Pharmaceutical (OPHYL), for CUE-401, a bispecific protein designed to induce and expand regulatory T cells for the treatment of autoimmune and inflammatory diseases. The strategic collaboration with Ono is an important advancement in Cue Biopharma’s corporate development plan to seek third party support to further develop its CUE-400 series and provides dedicated resources and capabilities to help advance CUE-401 toward the clinic. Under the terms of the agreement, Ono will pay Cue Biopharma an upfront payment and fully fund all research activities related to CUE-401 through a specified option period. During this option period Cue Biopharma will be responsible for the research and development of CUE-401. Upon Ono’s exercise of its option to license CUE-401, Cue Biopharma will receive an option exercise payment and be eligible for development and commercial milestone payments up to an aggregate of approximately $220M, as well as tiered royalties on sales. Upon any such exercise, Ono will receive worldwide rights to develop and commercialize CUE-401, with Cue Biopharma retaining a 50% co-development and co-commercialization right in the United States. "This strategic collaboration with Ono Pharmaceutical, a leading Japanese pharmaceutical company with a track record of scientific innovation, is a significant accomplishment for Cue Biopharma, as it allows us to further develop this promising biologic through the support of a strategic partner," stated Daniel Passeri, chief executive officer of Cue Biopharma. "Through this important partnership we have secured resources and capabilities necessary to help advance CUE-401 towards the clinic, while preserving potential value to our shareholders through a 50:50 collaboration right for the U.S. market."