Immuno-oncology company Agenus Inc (Nasdaq:AGEN) said on Tuesday that it has triggered the first USD20m contingent payment under its strategic collaboration with Zydus Lifesciences Ltd.

The payment was activated through contracted work orders covering chemistry, manufacturing and controls (CMC) and production activities related to botensilimab (BOT) and balstilimab (BAL).

The work will enable Zydus to initiate commercial supply preparations and support regulatory readiness for biologics licence and marketing authorisation applications. Manufacturing activities will also expand inventory to meet demand from clinical development programmes, early access pathways, and potential global commercialisation.

This milestone represents the first operational activity between Agenus and Zylidac Bio LLC, the US-based biologics manufacturing subsidiary of Zydus Life Sciences. Under the collaboration agreement, up to USD50m in contingent payments may be triggered by BOT and BAL production orders.