AstraZeneca, Daiichi Sankyo Enter $6-Bn Pact for Antibody Drug Conjugate
AstraZeneca has entered into a global development and commercialization agreement with Daiichi Sankyo, in a deal worth up to $6 billion, for DS-1062, Daiichi Sankyo’s antibody drug conjugate (ADC) for treating multiple tumor types.
DS-1062 is in development for treating multiple tumors that commonly express the cell-surface glycoprotein, TROP2. TROP2 is overexpressed in the majority of non-small cell lung cancers and breast cancers, according to information from the companies. Using Daiichi Sankyo’s proprietary DXd ADC technology, DS-1062 is designed to deliver chemotherapy selectively to cancer cells and to reduce systemic exposure. A comprehensive development program with DS-1062 is planned globally.
Under the agreement, AstraZeneca will pay Daiichi Sankyo an upfront payment of $1 billion in staged payments: $350 million is due upon completion of the deal, with $325 million after 12 months and $325 million after 24 months from the effective date of the agreement. AstraZeneca will pay additional conditional amounts of up to $1 billion for the successful achievement of regulatory approvals and up to $4 billion for sales-related milestones.
The companies will jointly develop and commercialize DS-1062 globally, except in Japan, where Daiichi Sankyo will maintain exclusive rights. AstraZeneca and Daiichi Sankyo will equally share development and commercialization expenses as well as profits relating to DS-1062 worldwide, except for Japan, where Daiichi Sankyo will be responsible for such costs and will pay AstraZeneca mid-single-digit royalties. Daiichi Sankyo will record sales in the US, certain countries in Europe, and certain other countries where Daiichi Sankyo has affiliates. Profits shared with AstraZeneca from those countries will be recorded as collaboration revenue by AstraZeneca. AstraZeneca will record product sales in other countries globally, for which profits shared with Daiichi Sankyo will be recorded within cost of sales. Daiichi Sankyo will manufacture and supply DS-1062.
There are no closing conditions to the transaction. The collaboration agreement became effective on July 27, 2020.
This is a second recent deal between AstraZeneca and Daiichi Sankyo for an ADC in oncology. In March 2019, the companies entered into a global collaboration to jointly develop and commercialize Enhertu (fam-trastuzumab deruxtecan-nxk), an HER2-directed ADC for treating breast cancer, worldwide, except in Japan, where Daiichi Sankyo maintains exclusive rights. The drug received approval from the US Food and Drug Administration in December 2019