Medivir AB (STO:MVIR), a Swedish developer of drugs with a focus on cancer where the unmet medical needs are high, has entered into an exclusive licensing agreement with IGM Biosciences Inc (Nasdaq:IGMS), the company announced on Monday.

Under this agreement IGM will receive global, exclusive development rights for birinapant, a clinical-stage SMAC mimetic that binds to and degrades Inhibitors of Apoptosis Proteins (IAPs), leading to cell death (apoptosis) in tumour cells.

IGM intends to develop birinapant in combination with IGM-8444, an IgM antibody targeting Death Receptor 5 (DR5), for the treatment of solid tumours. This combination has been shown to enhance anti-tumour activity preclinically.

Medivir will receive an upfront payment of USD1m, followed by an additional USD1.5m when birinapant is included by IGM in clinical phase I studies. If birinapant is successfully developed and approved, Medivir will also receive milestone payments up to a total of approximately USD350m, plus tiered royalties up to mid-teens on net sales.

Subject to regulatory review, IGM hopes to begin clinical testing of birinapant in combination with IGM-8444 for the treatment of solid cancers later this year.