Celgene Teams Up With Agios In Long-Term Cancer Metabolism Pact

The April 15 deal between Agios Pharmaceuticals Inc., a start-up barely two years old working in a novel area of cancer research, and Celgene Corp. is noteworthy for a number of reasons. [See Deal] The $130 million up-front payment associated with the deal is the largest year-to-date for a pharmaceutical alliance for which metrics have been disclosed, and is particularly hefty for a start-up that has yet to put a molecule in the clinic. The alliance also demonstrates how smaller biotechs are increasingly looking to big-sibling relationships with larger pharmaceutical companies to drive long term sustainability. Indeed, the agreement is reminiscent of Regeneron Pharmaceuticals Inc.'s partnership with Sanofi in the antibody discovery space or Purdue Pharma LP/Mundipharma International Corp. Ltd.'s alliance with oncology player Infinity Pharmaceuticals Inc.[See Deal][See Deal] ( See "Sanofi Makes its Biggest External Play Yet With Long-Term Regeneron Deal," IN VIVO , December 2009 Also see "Sanofi Makes its Biggest External Play Yet With Long-Term Regeneron Deal" - In Vivo, 1 December, 2009. and "Infinity/Purdue: The Challenge of Reprising Roche/Genentech," IN VIVO , January 2009 Also see "Infinity/Purdue: The Challenge of Reprising Roche/Genentech" - In Vivo, 1 January, 2009..) Given Agios' status as a private company, it's also surprising that the start-up's backers would consider tying the high flying biotech so closely to one potential acquirer so early in its life cycle.