Benzinga | Jan 13, 2022 11:43AM EST

Scorpion Therapeutics, AstraZeneca Ink Precision Medicines Pact For Hard-To-Target Cancer Proteins

AstraZeneca Plc (NASDAQ:AZN) has signed a collaboration agreement with Scorpion Therapeutics to discover, develop and commercialize precision medicines against previously hard-to-target cancer proteins.

* The new collaboration focuses on a class of proteins called transcription factors, which control gene expression and regulate critical cellular processes, including cell growth and survival.

* Scorpion will receive an upfront cash payment of $75 million and is eligible to receive additional success-based payments in the form of option fees and milestone payments and tiered sales-based royalties from mid-single digit to low-double digits.

* Scorpion will lead discovery and certain preclinical activities. AstraZeneca has the exclusive option to license worldwide rights for up to three drug candidates.

* AstraZeneca would be responsible for development and commercialization activities worldwide following opt-in.

* At the same time, Scorpion would retain the option to co-develop and co-promote up to two of these programs in the U.S. under certain conditions, including if AstraZeneca exercises three license options.

* If Scorpion opts into co-developing and co-promoting a nominated program, it will participate in the operating costs and be entitled to a proportionate share of the economics in the U.S.

* Price Action: AZN shares are up 0.14% at $58.48 during the premarket session on the last check Thursday.