Aduro Biotech, a private, clinical-stage immuno-oncology company based in Berkeley, Calif., is collaborating with Novartis for the worldwide research, development and commercialization of novel immuno-oncology products derived from Aduro’s cyclic dinucleotide (CDN) approach to target the STING (Stimulator of Interferon Genes) receptor, that, when activated, is known to initiate broad innate and adaptive tumor-specific immune responses.

Novartis will make an upfront payment of $200 million to Aduro and, if all development milestones are met, Aduro is eligible to receive up to an additional aggregate amount of $500 million. In addition, Novartis has made an initial 2.7% equity investment in Aduro for $25 million, with a commitment for another $25 million investment at a future date.

Aduro will lead commercialization activities and will book sales in the U.S. for any products developed and commercialized pursuant to this collaboration, with Novartis leading commercialization activities in all other regions. The companies will share in profits, if any, in the U.S., Japan and major European countries. Novartis will pay Aduro a mid-teens royalty for sales in the rest of the world.

The agreement covers the joint research, development and commercialization of CDN-based therapies in the field of oncology. Aduro maintains rights to its CDN technology in all other therapeutic areas, including infectious disease and autoimmunity, among others.