Afraxis, a San Diego-based biotechnology company fully funded by Avalon Ventures, has entered into a global licensing agreement with Genentech, a member of the Roche Group, to develop compounds for an undisclosed novel target.
Genentech will have exclusive, worldwide rights to develop and commercialize Afraxis' proprietary compounds. Afraxis is eligible to receive upfront, research, development and commercialization milestone payments, together totaling up to $187.5 million.
"Afraxis has secured this relationship with Genentech only five years after founding the company as part of Avalon's life sciences portfolio," said Jay Lichter, Ph.D., president and CEO of Afraxis, and managing partner of Avalon Ventures. "Avalon's approach to investing in companies at the earliest stages and staying actively involved in company management is proving to be a successful strategy for life science investing."
Full financial terms have not been disclosed.