-Shares gain 35% on exclusive $402 million license
-Win-win deal for both companies
-COPD market worth around $20 billion
Drug discovery company C4X Discovery (C4XD:AIM) has signed an exclusive global licensing agreement with AstraZeneca (AZN) worth up to $402 million, sending its shares surging 35% to 27.7p on Monday.
AstraZeneca will develop and commercialise an oral therapy treatment for respiratory diseases with a focus on COPD (chronic obstructive pulmonary disease). COPD is the third leading cause of death worldwide and worth close to $20 billion.
Under the terms of the deal C4X will receive pre-clinical milestone payments worth up to $16 million and an upfront payment of $2 million. The company will also potentially receive up to $385.8 million comprised of clinical development and milestone payments and tiered mid-single digit percentage royalties.
WIN-WIN DEAL
Respiratory disease is a key focus for AstraZeneca with their medicines reaching over 18 million patients and the business generating annual revenues of over $8 billion.
Sir Meme Panglos, executive vice-president of research and development commented: ‘At AstraZeneca, we are committed to transforming care in respiratory and immune-mediated disease and move beyond symptom control.
‘Our alliance with C4XD adds an important new asset to our portfolio to push the boundaries of science by targeting underlying disease drivers to potentially modify the course of these diseases.’
The deal represents further endorsement of CX4 Discovery’s portfolio of small molecule drug candidates across multiple diseases.
It is the third significant licensing deal signed with a major pharmaceutical company within a five-year period, with a combined total value of up to $1.2 billion in commercially attractive markets.
In April 2021 the company signed a €414 million exclusive global licensing deal with French pharma company Sanofi (SAN:EPA) to commercialise an oral therapy for the treatment of inflammatory diseases.
CEO Clive Dix said: ‘I know that in AstraZeneca's hands, with their scientific, technical and commercial expertise, our NRF2 Activator programme has the potential to deliver life changing treatments for the millions of patients suffering with COPD across the world.’
