GSK Buys Global Rights To Preclinical Cancer Therapy For $357M

• Under the deal, France-based Syndivia will receive an upfront payment, as well as development and commercial milestone payments, totaling up to £268 million.
• GSK, meanwhile, will undertake development, manufacturing, and worldwide commercialization of the ADC program.
• In preclinical studies, the ADC was effective at shrinking tumors without causing a proportional increase in significant side effects, even at higher doses, GSK said. 
   

GSK plc (GSK) on Monday announced an agreement granting the company exclusive worldwide rights to develop and commercialize a preclinical antibody-drug conjugate from privately held biotech firm Syndivia in metastatic castration-resistant prostate cancer.

Under the deal, France-based Syndivia will receive an upfront payment, as well as development and commercial milestone payments, totaling up to £268 million ($357.32 million). The company is also eligible to receive tiered royalties on future product sales.

GSK, meanwhile, will undertake development, manufacturing, and worldwide commercialization of the ADC program.

Potential Of The ADC

An antibody drug conjugate is a cancer therapy that links a monoclonal antibody to a potent chemotherapy drug. The antibody helps deliver the chemotherapy drug directly to specific cancer cells, minimizing the damage to healthy tissue.

The ADC in the deal has shown enhanced anti-tumor activity and an encouraging safety profile, GSK said. Furthermore, in preclinical studies, it was effective at shrinking tumors without causing a proportional increase in significant side effects, even at higher doses, it added.

Addressable Market

According to GSK, about 1.4 million men are diagnosed with prostate cancer globally every year. Of these, about 10% to 20% develop metastatic castration-resistant prostate cancer (mCRPC), an advanced form of prostate cancer that has spread to other parts of the body, such as the bones, and continues to grow despite treatment to lower testosterone levels. Treatment options for mCRPC are limited, and survival rates are low.  

“The addition of this ADC builds on GSK's growing portfolio and strengths in tumor-targeted technologies, including GSK’227, our B7-H3-targeting ADC.” 
–Hesham Abdullah, Senior Vice President, Global Head Oncology, R&D, GSK

NYSE-listed GSK shares traded 1.4% higher at the time of writing. On Stocktwits, retail sentiment around GSK stayed within the ‘bearish’ territory while message volume stayed at ‘high’ levels.

GSK stock is up by 30% this year and by about 16% over the past 12 months. 

Read also: Toyota Records Nine Consecutive Months Of Sales Growth In September, Thanks To Major Bump Up In US Figures

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on