Altus Pharmaceuticals, Inc. has entered into an agreement with Genentech to develop, manufacture and commercialize ALTU-238, Altus’ subcutaneous formulation of human growth hormone (HGH), which employs Altus’ protein crystallization and formulation technology, for patients with growth hormone deficiencies.

The alliance and license agreement is exclusive to North America with an option for a global agreement. Genentech will make a $15 million upfront payment to Altus with the potential for Altus to receive additional payments of approximately $140 million based on development and commercialization milestones. Genentech will also invest $15 million in Altus through the purchase of shares. Genentech has a global commercialization option for ALTU-238 whereby Altus could receive additional payments of more than $110 million.

Under the terms of the agreement, Genentech will be responsible for ALTU-238 development and commercialization costs in North America and the two companies will co-promote and market ALTU-238. The agreement may be subject to Hart-Scott-Rodino approval under U.S. antitrust laws and customary closing conditions.

“The Altus and Genentech alliance is an important strategic move that we believe further validates ALTU-238 as a long-acting product candidate for growth hormone deficient patients as well as the value of our protein crystallization platform,” stated Sheldon Berkle, president and chief executive officer of Altus Pharmaceuticals. “Through this agreement, we are now collaborating with a premier biopharmaceutical company that is a leader in the U.S. growth hormone market. We believe that Genentech’s development experience as well as their knowledge of the regulatory and commercial environments for growth hormone products should contribute to even greater potential for ALTU-238.”