arGEN-X, a clinical-stage biopharmaceutical company focused on creating and developing differentiated therapeutic antibodies for the treatment of cancer and severe autoimmune diseases, has entered into a long-term strategic alliance with Shire Pharmaceuticals.

arGEN-X will bring its entire suite of human antibody discovery technologies to a partnership focused on multiple targets aligned with Shire's therapeutic focus. The multi-year initiative aimed at helping augment the Shire development pipeline follows an initial R&D collaboration undertaken in March 2012.

Shire will make a total upfront investment of $20.4 million in arGEN-X, consisting of $4 million in cash and $16.4 million in equity. In addition, it will fund the collaborative research programs at arGEN-X and pay fees, clinical, regulatory and sales milestones, as well as single digit royalties on therapeutic product sales. Shire will be responsible for clinical development and commercialization of products, with arGEN-X having the right to license any programs not pursued by Shire into its own development pipeline.