Capricor gets $12.5M upfront payment in Janssen development agreement

January 3, 2014

Capricor Therapeutics (CAPR) disclosed in a regulatory filing that it entered into a collaboration agreement and with Janssen Biotech, a wholly-owned subsidiary of Johnson & Johnson (JNJ). Under the terms of the agreement, Capricor and Janssen agreed to collaborate on the development of Capricor’s cell therapy program for cardiovascular applications, including its lead product, CAP-1002. Capricor and Janssen further agreed to collaborate on the development of cell manufacturing in preparation for future clinical trials. Under the agreement, Capricor will receive an upfront cash payment of $12.5M from Janssen, and Capricor will also contribute to the costs of development of a chemistry, manufacturing and controls package. In addition, Janssen will have the exclusive right to enter into an exclusive license agreement pursuant to which Janssen would receive a worldwide, exclusive license to exploit CAP-1002 as well as certain allogeneic cardiospheres and cardiosphere-derived cells in the field of cardiology. Janssen has the right to exercise the option at any time until sixty days after the delivery by Capricor of the six-month follow-up results from Phase II of Capricor’s ALLSTAR clinical trial for CAP-1002. If Janssen exercises its option rights, Capricor would receive an upfront license fee and additional milestone payments which may total up to $325M. In addition, a double-digit royalty would be paid on commercial sales of licensed products