Transgene (Paris:TNG) (Euronext Paris: TNG), a biotech company that designs and develops virus-based immunotherapies against cancers and infectious diseases, has signed a collaborative research, option and exclusive license agreement with United Kingdom-based AstraZeneca, it was reported on Friday.

The contract has been signed to co-develop five armed oncolytic vaccinia virus candidates. Innovative oncolytic viruses resulting from this collaboration will use Transgene's proprietary next generation viral platform Invir.IO. According to the terms of the agreement Transgene will contribute its oncolytic virus expertise, including viral design and engineering, to the collaboration and its novel and improved Vaccinia Virus (TK-, RR-) double-deleted backbone and will be responsible for in-vitro pre-clinical development. AstraZeneca will select the transgenes to be encoded within the virus and will be responsible for further in-vivo pre-clinical development and, subject to option exercise, clinical development and commercialisation of these novel oncolytic immunotherapies.

Transgene is to receive USD10m upon signing and additional pre-clinical success milestones of up to USD3m. Transgene is eligible to receive an option exercise payment on each candidate in the event AstraZeneca exercises its license option, as well as development and commercial milestones and royalties.