arGEN-X, a clinical-stage biopharmaceutical company has entered into a long-term alliance with Shire Pharmaceuticals which is based in Ireland for $20 million. arGEN-X focuses on developing differentiated therapeutic antibodies to treat severe autoimmune diseases and cancer. As part of the deal, arGEN-X will bring its entire range of human antibody discovery technologies to a partnership focused on multiple targets which is aligned with the Belgium-based company’s therapeutic focus.

This deal follows a partnership between Shire Pharmaceuticals and arGEN-X for a research and development partnership undertaken in March 2012. According to Tim Van Hauwermeiren, Chief Executive Officer of arGEN-X, the partnership philosophy at their company is to create long-term alliances with select, top tier companies.

Under the terms of the deal, Shire Pharmaceuticals will make an upfront payment of 3 million euros in cash and 12 million euros in equity. In addition to this investment, the pharmaceutical company will fund the joint research programs at arGEN-X and pay fees, clinical, sales and regulatory milestone as well as royalty payment on therapeutic product sales. Shire Pharmaceuticals will be responsible for clinical development as well as commercialization of products. However, arGEN-X will have the right to license anything that Shire does not want.

Global Head of Research and Development at Shire Pharmaceuticals, Philip Vickers said that their alliance with arGEN-X has exceeded their expectations in delivering highly differentiated antibody programs within their therapeutic focus. He further stated that it was the right time to commit more significantly in the company through a longer-term investment in its unique technologies.

The expanded partnership of arGEN-X with Shire comes in the wake of similar deals made by arGEN-X with pharmaceutical giants Eli Lilly and Bayer. arGEN-X proprietary pipeline includes ARGX-110, the mid-stage cancer treatment, ARGX-111, the Phase I tumor therapy, and a number of preclinical candidates, all based on the company’s Simple Antibody Platform.