AstraZeneca (AZN) has signed a $6bn (£4.7bn) oncology deal with Japanese pharma group Daiichi Sankyo. The tie-up pertains to Daiichi’s antibody drug conjugate (ADC) ‘DS-1062’. ADCs are targeted therapies that can deliver chemotherapy to cancer cells.
DS-1062 is being developed for the treatment of various tumours, with a particular emphasis on non-small cell lung cancers and breast cancers, both long-term strategic focuses for AstraZeneca.
It follows that the UK healthcare giant will pay Daiichi an upfront sum of $1bn in staged instalments: $350m at completion, $325m after a year and $325m after two years. AstraZeneca will also pay conditional amounts of up to $1bn on achievement of regulatory approvals, and up to $4bn for sales-related milestones.
The two companies will work on the development and commercialisation of DS-1062 around the world, except in Japan where Daiichi will keep its exclusive rights. They will share the costs and the profits relating to the product, bar those generated in Japan. The deal will not affect AstraZeneca’s financial outlook for 2020.
The collaboration with Daiichi follows on from an earlier union between the pair – announced in March 2019 – which saw them work together on the ADC ‘Enhertu’. This agreement was valued at $6.9bn in total, including contingent payments.
AstraZeneca made two separate announcements this morning, on top of the Daiichi deal. Its ‘Imfinzi’ drug has been recommended for marketing authorisation in the European Union (EU) for use in adults with extensive-stage small cell lung cancer, in combination with other specific treatments. Meanwhile, the group’s ‘Calquence’ therapy has been recommended for marketing authorisation in the EU for treating adult patients with chronic lymphocytic leukaemia (CLL). Astra noted that CLL is the most common type of leukaemia in adults.
