Compugen Agrees with AstraZeneca on $65M Deal
Compugen (CGEN) announced that it has agreed with AstraZeneca to monetize a portion of Compugen's rilvegostomig future royalties. Compugen has amended the exclusive license agreement with AstraZeneca (AZN), previously entered into in March 2018, to strengthen Compugen's balance sheet and advance its innovative and differentiated immuno-oncology pipeline. Key Transaction Highlights include: $65M upfront payment and a potential additional $25M upon the next milestone payment on BLA acceptance, for a portion of Compugen's existing royalty interest in rilvegostomig; Compugen shall retain the majority of its future royalties and remain eligible for tiered royalties of up to mid-single digits on future sales and potential future regulatory and commercial milestones of up to $195M. The amount includes the $25M stated above. AstraZeneca is developing rilvegostomig, a first-in-class dual-checkpoint bispecific that delivers co-ordinated PD-1 and TIGIT blockade on the same immune effector cell, restoring antitumor immune activity and supporting the potential for durable, long-term outcomes. The TIGIT component of rilvegostomig is derived from Compugen's fully owned COM902 which is one of only two clinical-stage Fc-reduced anti-TIGIT monoclonal antibodies currently in development. AstraZeneca is advancing rilvegostomig in a broad development program including 11 ongoing Phase 3 trials in patients with lung, gastrointestinal, and endometrial cancers.
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AstraZeneca Announces $15B Investment in China to Expand Operations
- Major Investment Plan: AstraZeneca has announced a $15 billion investment in China by 2030 to expand its drug manufacturing and R&D capabilities, marking the next phase of the company's development in China, which is expected to significantly enhance its cell therapy and radioconjugates capabilities.
- Strategic Market Positioning: China has become AstraZeneca's second-largest market, and this investment will further solidify its strategic hub status in global innovation, particularly with two global R&D centers in Beijing and Shanghai that have led 20 global clinical trials to date.
- Enhancing Public Health Contribution: CEO Pascal Soriot stated that this investment will strengthen AstraZeneca's contribution to high-quality development in China, especially in breakthrough treatment areas like cell therapy, bringing next-generation modalities to patients.
- Manufacturing and R&D Capacity Boost: This investment will not only increase the capacity of four manufacturing sites but also drive commercial operations across five regional hubs, further enhancing the company's competitiveness and influence in the Chinese market.
CSPC Pharmaceutical Partners with AstraZeneca for Obesity Therapies
- Partnership Agreement: CSPC Pharmaceutical has signed an agreement with AstraZeneca to jointly develop innovative long-acting peptide therapies targeting obesity and related weight-management conditions, marking a significant collaboration in the biopharmaceutical sector.
- Upfront Payment and Potential Earnings: AstraZeneca will pay CSPC an upfront fee of $1.2 billion, with the potential for up to $3.5 billion in research and development milestone payments, indicating strong confidence in the project's viability.
- Sales Milestones and Royalties: The agreement includes up to $13.8 billion in sales-based milestone payments and double-digit percentage royalties tied to annual net sales of the licensed products, enhancing CSPC's revenue potential significantly.
- Broad Market Prospects: This collaboration not only aids CSPC in accumulating technological expertise in obesity treatment but also boosts its competitiveness in the global market, particularly in the rapidly growing health management sector.
