Nuevolution AB (STO:NUE), a small molecule drug discovery biotechnology company, announced on Wednesday that Amgen has exercised its opt-in right to a programme that is part of its multiple target research collaboration with Nuevolution.

As a result of this opt-in, Amgen will now be responsible for all further research and development costs of the programme as incurred by both parties. Also, Amgen has an exclusive option to license the programme, in accordance with the terms of the research collaboration agreement. Amgen's option to license is valid until the end of phase I.

Reportedly, Nuevolution and Amgen had entered into the research collaboration in October 2016. Under the terms of the agreement, Nuevolution is applying its Chemetics drug discovery platform and drug discovery expertise against multiple disease targets and Amgen is providing its disease expertise and drug discovery and development expertise with the mutual goal of identifying, developing and commercialising novel therapeutics in the areas of oncology and neuroscience.

Nuevolution is responsible for the early research phase and Amgen will work collaboratively with Nuevolution during late-stage research. Amgen is fully responsible for preclinical development, clinical development and commercialisation worldwide.

According to the company, Amgen's decision to opt-in follows the demonstration of proof-of-concept in animal disease models, a milestone that ends the early research phase in accordance with the agreement.

Now, both companies will jointly commence the late-stage research phase with the mutual goal of nominating a clinical development candidate.

Subject to further successful development, and upon Amgen's discretionary decision to exercise its future option to license, Nuevolution will be eligible to receive a licensing fee of at least USD10m depending on the development stage of the programme at licensing.

During the potential further development and commercialisation of the programme, Nuevolution will also be eligible to receive success-based milestone payments. These combined payments could amount to up to USD410m. Nuevolution will also be entitled to receive royalties on future sales.