Argenx has entered into a significant $1.5 billion agreement with Unnatural Products (UNP) to develop macrocyclic peptides targeting challenging biological issues.

Under this partnership, UNP will spearhead the early research and development phases, culminating in necessary studies for clinical trials.

Argenx retains the authority to progress selected candidates through human testing and eventual commercialization.

The agreement encompasses various payments related to research, development, regulatory milestones, and commercial achievements, along with option fees.

Should the therapies reach commercialization, UNP will also benefit from royalties on future product sales.

Utilizing its proprietary discovery platform, UNP aims to create potent and selective macrocyclic peptides that are suitable for oral administration.

Despite historical medical applications, the systematic development of macrocyclic compounds has encountered obstacles; however, there is a renewed interest in this category among pharmaceutical firms.

The specific biological targets for this therapeutic program remain undisclosed and will be determined by Argenx.

In a move to strengthen their collaboration, Argenx has made a strategic equity investment in UNP.

UNP's drug discovery platform is recognized as the first scalable solution for engineering synthetic macrocycles, leveraging advanced technologies such as AI-guided design.

While details regarding upfront payments and R&D funding are not publicly available, the agreement does include provisions for immediate research funding and milestone payments.