French company Innate Pharma and UK-based AstraZeneca have had a research collaboration deal in place since 2015. The two companies announced a new multi-term deal to build on that collaboration.
French company Innate Pharma and UK-based AstraZeneca have had a research collaboration deal in place since 2015. The two companies announced a new multi-term deal to build on that collaboration.
AstraZeneca picks up full oncology rights to Innate’s first-in-class humanized anti-NKG2A antibody, monalizumab. AstraZeneca also picks up option rights to IPH5201, an antibody against CD39, in addition to four preclinical molecules from Innate’s pipeline.
Innate is licensing rights to AstraZeneca’s recently-approved Lumoxiti (moxetumomab pasudotox) for hairy cell leukemia (HCL) in the U.S. and Europe.
“Our expanded collaboration with Innate Pharma enables us to further strengthen our leadership in immuno-oncology, and to explore the potential of next-generation immuno-oncology pathways, together with the world-class scientific team of Innate,” Pascal Soriot, AstraZeneca’s chief executive officer, said in a statement. “Today’s agreement also secures the long-term commercialization of the recently FDA approved rare disease medicine, Lumoxiti, through dedicated focus and investment by Innate Pharma.”
NKG2A is a checkpoint receptor found on tumor-infiltrating cytotoxic T-cells and natural killer (NK) cells that inhibits their anti-cancer activity. The two companies share Phase II development for monalizumab in combination trials in head and neck cancer and colorectal cancer. They also have clinical trials of the drug ongoing in other solid tumors.
The companies recently presented data at the European Society of Medical Oncology (ESMO) 2018 Congress of a single-arm Phase II trial of monalizumab in combination with cetuximab in head and neck cancer. The drug combination showed deep and durable responses in 40 patients with an objective response rate (ORR) of 27.5 percent, progression-free survival (PFS) of 5.0 and overall survival (OS) of 10.3 months.
As part of the deal, Innate is paying AstraZeneca $50 million upfront for Lumoxiti and $25 million for future commercial and regulatory milestones. AstraZeneca is paying Innate $100 million in the first quarter of 2019 to expand the monolizumab collaboration. Also, AstraZeneca will pay Innate $50 million upfront to develop IPH5201 plus an option exercise fee, milestones and royalties. Innate will have the possibility of co-promotion and profit sharing in the European Union.
In addition, AstraZeneca will pay Innate $20 million upfront for an exclusive license option on the four pipeline molecules. The options can be exercised before they hit clinical development, which would trigger an option exercise fee, and milestone and royalty payments. Innate also has the possibility for co-promotion and profit sharing in the EU.
Furthermore, AstraZeneca acquired a 9.8 percent equity stake in Innate Pharma by issuing 6,260,500 new shares to AstraZeneca at 10 euros per share.
CNBC notes that the share price is double the market rate and “marks a vote of confidence in the cancer immunotherapy specialist and Innate shares jumped 29 percent on the deal news.”
In total, there is a $72 million equity stake, AstraZeneca will make a total of payment of $170 million to Innate, and Innate will pay up to $75 million to AstraZeneca for Lumoxiti.
“This is a defining moment for us,” said Innate’s chief executive officer Mondher Mahjoubi, in a statement. “It really means the dream has become true and the company now is a fully integrated biotech with an opportunity to commercialize a major innovative treatment.”
Mahjoubi is a former AstraZeneca executive.
