Sweden-based Medivir AB (publ) (Nasdaq Stockholm: MVIR) has signed an exclusive licensing agreement with United States-based IGM Biosciences Inc (Nasdaq: IGMS) for development rights of birinapant, a clinical-stage SMAC mimetic that binds to and degrades Inhibitors of Apoptosis Proteins resulting in cell death (apoptosis) in tumour cells, it was reported on Monday.

The contract is intended to allow IGM Biosciences Inc to receive global, exclusive development rights for birinapant. The combination of IGM-8444, an IgM antibody targeting Death Receptor 5 (DR5) being developed by IGM, and birinapant has been indicated to improve anti-tumour activity preclinically.

Under the terms of the deal, Medivir will receive an upfront payment of USD1m after signing the contract, followed by an additional USD1.5m when the product is included by IGM in clinical phase I studies. The terms of the contract will also allow Medivir, should birinapant be successfully developed and approved, to receive milestone payments worth around USD350m and tiered royalties up to mid-teens on net sales.