Asia Deal Watch: Innovent Picks Up Asian Rights To Three Clinical Cancer Candidates From Incyte

Incyte gets $40m up front and can earn up to $351.5m in milestones pegged to a Phase III JAK1 inhibitor and a pair of Phase II candidates. Shionogi obtains Asian rights to an allosteric inhibitor for cognitive disorders from Tetra.

Scrip regularly covers business development and deal-making in the biopharmaceutical industry. Deal Watch is supported by deal intelligence from Strategic Transactions.

Innovent Licenses In Three Incyte Oncology Assets

Chinese firm Innovent Biologics Inc. will pay $40m up front plus up to a further $351.5m for development and commercialization rights in mainland China, Hong Kong, Macau and Taiwan to three clinical-stage oncology product candidates developed by US company Incyte Corp..

The assets covered by the deal, announced Dec. 16, include the oral FGFR1/2/3 inhibitor pemigatinib (in Phase II elsewhere), the JAK1 inhibitor itacitinib (Phase III), and the PI3K inhibitor parsaclisib (Phase II).

The three are in development for various indications by Incyte, including, respectively, FGFR-altered cholangiocarcinoma and urothelial carcinoma, graft-versus-host disease after bone marrow transplant, and various non-Hodgkin lymphomas.

Under the agreement, a $20m payment to Wilmington, Del.-based Incyte is linked to the first IND application in China by Innovent, expected in 2019. Incyte is also eligible to up to $129m in development and regulatory milestones, and up to $202.5m in potential commercial milestones, plus tiered sales royalties that could range from the high teens to low 20s. The US firm also retains an option to assist in the promotion of the three molecules in China.

Innovent traditionally has concentrated mainly on immuno-oncology monoclonal antibodies, but said that the new deal would help broaden its oncology focus regardless of molecule size. It also suggested that it would also explore combinations of the Incyte molecules. On Oct. 31, the firm raised $421m in a Hong Kong initial public offering (IPO), becoming the fourth biotech from the Chinese mainland to go public in Hong Kong. (Also see "Strong Innovent IPO Restoring Faith In HK Biotech Listings? " - Scrip, 31 Oct, 2018.)

Shionogi Picks Up Asia Rights To Tetra’s Cognitive Candidate

Shionogi & Co. Ltd. paid $40m Dec. 18 in combined upfront funding, comprising a $35m equity investment and $5m licensing fee, to acquire development and commercialization rights in Japan, Taiwan and South Korea to BPN14770, Tetra Discovery Partners LLC’s Phase II stage PDE4D allosteric inhibitor for cognitive disorders. US-based Tetra also will be eligible for up to $120m in milestone payments, plus undisclosed royalties.

The drug is being developed for various cognitive and memory-linked brain disorders, including Alzheimer’s disease, Fragile X syndrome, major depression, schizophrenia and learning difficulties. Orphan status has already been granted in the US for adult Fragile X syndrome, for which a Phase II program is underway.

Tetra is also preparing to begin a Phase II study in early Alzheimer’s in early 2019, with development in both indications being helped by funding from the new deal.

Shionogi scientists contributed to the elucidation of the pathway selectively modulated by BPN14770, phosphodiesterase-4D, an enzyme family thought to be linked to cognitive and memory function, and the molecule showed potential in preclinical studies to promote maturation of, and protect, neuronal connections. Evidence of cognitive benefit in elderly subjects was also observed in early clinical studies.

Shionogi already has a presence in the CNS sector in Japan through the antidepressant Cymbalta (duloxetine), licensed from Eli Lilly & Co., and attention-deficit hyperactivity disorder drug Intuniv (guanfacine), licensed from Shire PLC.

Bridge Biotherapeutics Licenses Novel UC Drug From Daewoong

Bridge Biotherapeutics Inc., a South Korea-based clinical stage biotech, said on Dec. 20 that it signed a license and collaboration agreement with compatriot Daewoong Pharmaceutical Co. Ltd. for development of BBT-401, the first anti-Pellino-1 compound currently under development for ulcerative colitis (UC) treatment.

Under the agreement, Bridge will receive up to $40m in upfront and milestone payments, while Daewoong, also based in South Korea, gets exclusive rights to develop and commercialize BBT-401 in 22 Asian countries, including China, Japan and Korea. The two firms plan to initiate clinical development for BBT-401 in these countries, preceded by the Phase II study in the US with active UC patients.

BBT-401, discovered by Sungkyunkwan University and Korea Research Institute of Chemical Technology, is a gastrointestinal-tract restricted small molecule inhibitor of Pellino-1. Bridge plans to begin the Phase II study this year to evaluate the candidate’s safety and efficacy in selected groups of patients.

CJ Healthcare Links With Vimedimex For GERD Alliance In Vietnam

Korean firm CJ Healthcare Corp. said Dec. 20 that it has reached a licensing agreement with Vietnam's Vimedimex Medi Pharma for the novel drug K-Cap (tegoprazan) for the treatment of gastroesophageal reflux disease (GERD).

CJ Healthcare will receive an undisclosed amount of upfront cash and can earn milestone payments, while Vimedimex obtains the exclusive right to sell the drug in Vietnam. The drug is estimated to be launched in the country in 2021. Vimedimex currently holds the biggest market share of proton pump inhibitor (PPI) products for GERD in Vietnam.

K-Cap obtained approval in South Korea earlier this year and was licensed out to China’s Luoxin in 2015 for development and commercialization in China. A potassium-competitive acid blocker (P-CAB), the drug avoids some of the limitations of PPI products generally prescribed for GERD, CJ Healthcare said.

Ocumension Gets Certain Asian Rights To NicOx's Glaucoma Compound

NicOx SA licensed China-based Ocumension Therapeutics (wholly owned by 6 Dimensions Capital) exclusive rights on Dec. 17 to develop and commercialize its ophthalmic candidate NCX470 in China, Hong Kong, Macau and Taiwan.

Ocumension will pay NicOx €3m ($3.4m) up front, €2.5m when NicOx initiates a Phase III trial of NCX470 outside the licensed territory, up to €14.5m in development and approval milestones, and €16.25m split over three separate sales milestones associated with sales of up to €200m in the licensed territory, plus tiered 6%-12% tiered sales royalties.

NCX470 is a Phase II nitric oxide-donating bimatoprost targeting glaucoma or ocular hypertension. Further development activities will be overseen by a joint committee of representatives from both firms. Ocumension will fund all development costs. In November, Ocumension licensed exclusive rights to EyePoint Pharmaceuticals Inc.’s three-year posterior segment uveitis micro insert in the greater China region. [See Deal]

You can read more about other Asia deals that have been covered in depth by Scrip in recent days below:

(Also see "Bristol-Myers Squibb Sells French Consumer Health Unit UPSA To Taisho For $1.6bn " - Scrip, 19 Dec, 2018.)	Bristol-Myers Squibb Co. has joined the big pharma trend of divesting non-core assets to focus on high-margin prescription drugs by agreeing to sell over-the-counter drugs business UPSA Group for $1.6bn to Japanese health care firm Taisho Pharmaceutical Co. Ltd..
(Also see "Glenmark Snaps Up Exeltis Derma Range, Sets Base For US Brands Play" - Scrip, 19 Dec, 2018.)	Glenmark Pharmaceuticals Ltd. has tiptoed into the US branded dermatology segment by buying out a range of products from Exeltis Pharma. It hopes to build on this base with additional assets, alongside its generics business.
(Also see "Daiichi Taps AnHeart As It Focuses Oncology Push" - Scrip, 19 Dec, 2018.)	As part of its strategic pivot towards oncology, Daiichi Sankyo Co. Ltd. reaches a global out-licensing deal with a little-known US venture for an early-stage asset, which also hints at where its priorities lie.
(Also see "Astellas Exercises Option To Acquire Potenza, For Up To $405m" - Scrip, 14 Dec, 2018.)	Astellas Pharma Inc. has exercised an option to acquire Potenza Therapeutics Inc., paying up to $404.7m in cash for the private US venture in a deal that will boost its presence in immuno-oncology.