Arcus Biosciences Announces That Taiho Pharmaceutical Has Exercised Its Option to Develop & Commercialize AB928 in Its Territ...
July 12 2018 - 5:00PM
Business Wire
Arcus Biosciences, Inc. (NYSE:RCUS), a clinical-stage
biopharmaceutical company focused on creating innovative cancer
immunotherapies, today announced that Taiho Pharmaceutical Co.,
Ltd. (Taiho) exercised its option under the Option and License
Agreement entered into in September 2017 (Taiho Agreement) to
obtain an exclusive development and commercialization license to
the Company’s adenosine receptor antagonist program, which includes
AB928 and back-up compounds, in Japan and certain other territories
in Asia (excluding China). In addition to an option exercise
payment, Arcus is eligible to receive clinical and regulatory
milestones totaling up to $130 million as well as commercialization
milestones and royalties on net sales for this program.
“We are pleased that Taiho has decided to exercise their option
just as we are initiating our Phase 1/1b program for AB928 in the
U.S. and Australia,” said Terry Rosen, Ph.D., CEO at Arcus. “We
believe that Taiho’s decision to exercise their option to this
program at this early stage reflects their recognition that AB928,
the first adenosine 2 receptor antagonist in clinical development
to be specifically designed for the oncology setting, has
significant potential to treat a broad array of tumor types. We are
confident that Taiho’s expertise and capabilities in oncology, as
well as their experience co-promoting Keytruda® in Japan, make them
the ideal partner to bring AB928 to cancer patients as quickly as
possible in their territories.”
“Our collaboration with Arcus is an important relationship for
Taiho, as we expand our oncology franchise in Japan and other
important territories in Asia,” said Masayuki Kobayashi, President
and Representative Director at Taiho. “We have been impressed by
Arcus’s small molecule drug discovery capabilities, the quality of
their clinical candidates and the scientific rigor of their
candidate selection process. AB928 appears to have the ideal
properties to block the immuno-suppressive effects of adenosine in
the tumor microenvironment. We look forward to working with Arcus
on the development of this important new immuno-oncology mechanism
for the treatment of multiple tumor types.”
About the Taiho Agreement
Arcus and Taiho entered into an option and license agreement in
September 2017. Taiho will provide $35.0 million of cash payments
to Arcus during the first three years of the agreement in exchange
for an exclusive option, over a five-year period, to in-license the
development and commercialization rights to clinical stage product
candidates from Arcus’s portfolio for Japan and certain other
territories in Asia (excluding China). Taiho is obligated to pay an
option exercise payment for each option exercise of between $3.0
million to $15.0 million, with the amount dependent on the
development stage of the applicable Arcus program for which the
option is exercised. In addition, Taiho is obligated to pay to
Arcus clinical, regulatory and commercialization milestones up to
$275.0 million per program as well as royalties ranging from high
single digits to mid-teens on net sales in Taiho’s territories.
About AB928
AB928 is an orally bioavailable, highly potent antagonist of the
adenosine 2a and 2b receptors. The activation of these receptors by
adenosine interferes with the activity of key populations of immune
cells and inhibits an optimal anti-tumor immune response. By
blocking these receptors, AB928 has the potential to reverse
adenosine-induced immune suppression within the tumor
microenvironment. AB928 was designed specifically for the oncology
setting, with a profile that includes potent activity in the
presence of high concentrations of adenosine and a minimal shift in
potency due to non-specific protein binding, both essential
properties for efficacy in the tumor microenvironment. AB928 has
other attractive features, including high penetration of tumor
tissue and low penetration through the healthy blood-brain barrier.
In a Phase 1 trial in healthy volunteers, AB928 has been shown to
be safe and well tolerated and to have pharmacokinetic and
pharmacodynamic profiles consistent with a once-daily dosing
regimen.
About Arcus Biosciences
Arcus Biosciences is a clinical-stage biopharmaceutical company
focused on creating innovative cancer immunotherapies. Arcus
has several programs targeting important immuno-oncology pathways,
including a dual adenosine receptor antagonist AB928, which will be
evaluated in combination with other agents in multiple tumor types
in a Phase 1/1b program, and an anti-PD-1 antibody, which is being
evaluated in a Phase 1 trial and will be tested in combination with
Arcus’s other product candidates. Arcus’s other programs include a
small molecule inhibitor of CD73 and an anti-TIGIT antibody, both
of which are in IND-enabling studies. Arcus has extensive
in-house expertise in medicinal chemistry, immunology,
biochemistry, pharmacology and structural biology. For more
information about Arcus Biosciences, please visit
www.arcusbio.com.
Forward-Looking Statements
This press release contains forward-looking statements. All
statements other than statements of historical facts contained
herein, including, but not limited to, the potential for AB928
to treat a broad array of tumor types, are forward-looking
statements reflecting the current beliefs and expectations of
management made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All
forward-looking statements involve known and unknown risks,
uncertainties and other important factors that may cause Arcus’s
actual results, performance or achievements to differ significantly
from those expressed or implied. Factors that could cause or
contribute to such differences include, but are not limited to, the
inherent uncertainty associated with pharmaceutical product
development and clinical trials, the applicability of early studies
to Arcus’s clinical development program and the emergence of
drug-related adverse events in Arcus’s clinical trials with AB928.
Risks and uncertainties facing Arcus are described more fully in
Arcus’s quarterly report on Form 10-Q for the quarter ended March
31, 2018 filed on May 9, 2018 with the SEC. You are cautioned not
to place undue reliance on the forward-looking statements, which
speak only as of the date of this press release. Arcus disclaims
any obligation or undertaking to update, supplement or revise any
forward-looking statements contained in this press release.
Keytruda® is a registered trademark of Merck.
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version on businesswire.com: https://www.businesswire.com/news/home/20180712005706/en/
Arcus BiosciencesJennifer Jarrett,
510-694-6261jjarrett@arcusbio.comorNicole Arndt,
510-284-4728narndt@arcusbio.com
Arcus Biosciences (NYSE:RCUS)
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