New Roche deal could net Aileron $1.1B
Aileron Therapeutics Inc., a Cambridge biotech focused on protein-based treatments, has entered into a development deal with Roche that could bring as much as $1.1 billion to Aileron.
The Swiss pharmaceutical giant Roche will be working with Aileron to develop a class of drugs called Stapled Peptide Therapeutics, based on Aileron’s peptide stabilization technology. To start the collaboration, Roche will give Aileron $25 million in up front fees to gain access to the technology.
The deal calls for Roche and Aileron to work on drug candidates to target five undisclosed diseases or conditions. Those five do fall into Roche’s overall key areas of oncology, virology, inflammation, metabolism and central nervous system disorders, according to officials. To reach the $1.1 billion level, Aileron will have to meet a series of milestones in discovery, development, regulation and commercialization. But the $1.1 billion isn’t the final cap on the deal – Aileron is also eligible for royalties on any future sales that come out of the partnership.
In October of 2009, Aileron named industry veteran Steven Kafka as its chief financial officer and vice president of finance and operations. In June of that year, the company closed on $40 million in a Series D round of funding. The company has raised a total of $60 million in venture backing to date.
Founded in 2005, Aileron is backed by SR One Ltd., the corporate venture fund of GlaxoSmithKline (NYSE: GSK); Excel Medical Fund; Apple Tree Partners, the founding investor of Aileron; Novartis Venture Fund; Lilly Ventures; and Roche Venture Fund.