NovImmune/Serono Collaboration

From Serono's press release:

"May 17, 2005 - Serono (virt-x: SEO and NYSE: SRA) and NovImmune (private) have signed an exclusive agreement under which NovImmune has granted Serono exclusive worldwide rights to develop and commercialize two of NovImmune’s fully human monoclonal antibodies, NI-0401 and NI-0501, which may have therapeutic potential in a broad range of autoimmune diseases:

NI-0401 and NI-0501 are currently in preclinical development. NI-0401 is expected to enter clinical trials later this year.

Under the terms of the agreement, NovImmune is responsible for the development of the two products until the completion of Phase IIa clinical trials, after which Serono will take over further development. Serono will pay a license fee of $5 million for the two products, make a CHF 7.5 million equity investment in NovImmune, and lend NovImmune up to CHF 7.5 million, convertible into shares of NovImmune on certain conditions or repayable with accrued interest at maturity. Based on the successful development and initial registration of the products, NovImmune may receive up to $105 million in future milestone payments. In addition, NovImmune may receive further milestone payments based on approval of the products for additional indications, and will also be entitled to receive undisclosed royalties based on eventual net sales of the products."