Biopharmaceutical company MacroGenics Inc (NASDAQ:MGNX) reported on Wednesday that it has entered into an exclusive immuno-oncology collaboration and license agreement to develop and commercialize enoblituzumab with I-Mab Biopharma, a China and US based clinical-stage biopharmaceutical company.

The investigational drug enoblituzumab is an immune-optimized, anti-B7-H3 monoclonal antibody that incorporates MacroGenics' proprietary Fc Optimization technology platform. Enoblituzumab represents one of the most advanced programmes in development directed against B7-H3, a target for which no agent is approved.

This agreement provides I-Mab with regional development and commercialization rights in mainland China, Hong Kong, Macau and Taiwan. I-Mab will both lead regional studies in its territories as well as participate in global studies conducted by MacroGenics.

In conjunction with the agreement, MacroGenics plans to initiate a Phase 2 study of enoblituzumab in combination with MGA012 (also known as INCMGA0012), an investigational anti-PD-1 antibody that MacroGenics licensed to Incyte Corporation, in first-line patients with head and neck cancer later this year.

MacroGenics expects to receive an upfront payment of USD15m in connection with the collaboration and will be eligible to receive additional development and regulatory milestone payments of up to USD135m.

I-Mab will pay tiered double-digit royalties (ranging from mid teens to 20%) based on annual net sales in the territories.