Alston & Bird client Caelum Biosciences has entered into a collaboration with Alexion Pharmaceuticals, Inc., to develop a targeted therapy for light chain (AL) amyloidosis, a rare systemic disorder.
Under the terms of the agreement, Alexion will acquire a minority equity interest in Caelum, with an exclusive option to acquire the remaining equity in the company. Alexion will make payments to Caelum totaling up to $60 million, including the purchase price for the equity and milestone-dependent development funding payments.
The collaboration also provides for potential additional payments of up to $500 million, including the upfront and regulatory and commercial milestone payments, in the event Alexion exercises the acquisition option.
A subsidiary of Alston & Bird client Fortress Biotech, Inc., Caelum is a Nasdaq-listed clinical-stage biotechnology company developing treatments for rare and life-threatening diseases.
Advising Caelum is an Alston & Bird team led by partners Mark McElreath and James Sullivan, senior associate Sean Doherty, and associates Gerard Hart and Matthew Barringer of the firm’s Corporate & Business Transactions Group.