Pandion Therapeutics, a biotechnology company, has signed a license and collaboration contract with Japan-based Astellas Pharma.

It was reported yesterday that the contract has been signed to research, develop and commercialise locally acting immunomodulators for autoimmune diseases of the pancreas. The partnership will see the modular biologics and functional immunology expertise of Pandion integrated with the advanced therapeutics development and global commercialisation capabilities of Astellas for the treatment of autoimmune diseases.

According to the contract, Pandion Therapeutics will manage the design and discovery of bispecific drug candidates based on its modular immune effector and tissue tether platform, while Astellas will conduct preclinical, clinical and commercialisation activities for the selected candidates emerging from the collaboration.

The deal is worth up to USD790m. Pandion Therapeutics is to be paid up to USD45m upfront and payments pertaining to research and preclinical activities. The firm stands to earn more than USD750m in future development and commercial milestone payments from Astellas. This payment will be subject to the development and commercialisation of multiple candidates by the Japanese company for various pancreatic autoimmune diseases.