news/AZN/2023.02.23/AstraZeneca signs USD63 million agreement to address gastric cancer.txt

(Alliance News) - AstraZeneca PLC on Thursday said it has signed an exclusive licence agreement alongside KYM Biosciences Inc for CMG901, an antibody drug conjugate looking to address gastric cancer.Under the licence agreement, the Cambridge, England-based pharmaceutical firm will be responsible for the research, development, manufacture and commercialisation of CMG901 globally.AstraZeneca will make an upfront payment of USD63 million on transaction closing, and expects additional development and sales-related milestone payments of up to USD1.1 billion to KYM Biosciences, as well as tiered royalties up to low double digits.The transaction is expected to close in the first half of 2023, subject to customary closing conditions and regulatory clearances. The transaction does not impact AstraZeneca's financial guidance for 2023.CMG901 is currently being evaluated in a phase one clinical trial for the treatment of Claudin 18.2 positive solid tumours, including gastric cancer. Preliminary results from the trial have shown an encouraging clinical profile for CMG901, Astra told investors, with early signs of anti-tumour activity across the dose levels tested."We are excited by the opportunity to accelerate the development of CMG901, a potential new medicine for patients with Claudin18.2-expressing cancers. CMG901 strengthens our growing pipeline of antibody drug conjugates and supports our ambition to expand treatment options and transform outcomes for patients with gastrointestinal cancers," said Puja Sapra, senior vice president of Biologics Engineering & Oncology Targeted Delivery at Astra.AstraZeneca shares were trading 1.8% lower at 11,290.00 pence each in London on Thursday morning.By Holly Beveridge; Alliance News reporterComments and questions to newsroom@alliancenews.comCopyright 2023 Alliance News Ltd. All Rights Reserved.