AstraZeneca Acquires Joint Development and Commercialization Rights to a Very Exciting Cancer Candidate

AstraZeneca (AZN) announced this week that it has acquired joint development and commercialization rights to a cancer candidate from Daiichi Sankyo.

As part of the deal, AZN will be paying as much as $6.9 billion to Daiichi Sankyo of Japan.

The two companies will be developing and commercializing Daiichi Sankyo’s proprietary antibody-drug conjugate (ADC) trastuzumab deruxtecan. Both claim that it has the potential to redefine the standard of care in cancer treatment.

According to AZN’s press release, the companies will jointly develop and commercialize trastuzumab deruxtecan worldwide, except in Japan where Daiichi Sankyo will maintain exclusive rights. Daiichi Sankyo will be solely responsible for manufacturing and supply.

Pascal Soriot, Chief Executive Officer, stated, “We believe that trastuzumab deruxtecan could become a transformative new medicine for the treatment of HER2-positive breast and gastric cancers.

In addition, it has the potential to redefine breast cancer treatment as the first therapy for HER2-low expressing tumours. It also has the potential to treat other HER2-mutated or HER2-overexpressing cancers, including lung and colorectal cancers. We are proud to be working with Daiichi Sankyo, a long-term collaborator of AstraZeneca in other disease areas.”

George Nakayama, Representative Director, Chairman and Chief Executive Officer of Daiichi Sankyo, stated, “Trastuzumab deruxtecan is the flagship asset in our oncology pipeline created by our relentless pursuit of science and technology, the most important strengths of our company. Through the strategic collaboration with AstraZeneca, a company with a wealth of global experience and expertise in oncology, we will combine our respective skill sets to maximise the value of trastuzumab deruxtecan and accelerate the establishment of our global oncology business. By aiming to provide new treatment options across a wide range of cancers as soon as possible, we will maximise our contribution to patients with cancer and their families around the world.”

AstraZeneca will make an upfront payment of $1.35 billion while being entitled to make contingent payments, comprising regulatory and sales related milestone fees of up to $5.55 billion.

Disclaimer: We have no position in AstraZeneca plc. (NYSE: AZN) and have not been compensated for this article.