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Thursday, March 28, 2019

AstraZeneca to pay Daiichi Sankyo up to $6.9B in DS-8201 commercialization pact

Daiichi Sankyo () announced that it has entered into a global development and commercialization agreement with AstraZeneca (AZN) for Daiichi Sankyo’s lead antibody drug conjugate trastuzumab deruxtecan, or DS-8201, currently in pivotal development for multiple HER2 expressing cancers including breast and gastric cancer, and additional development in non-small cell lung and colorectal cancer. Daiichi Sankyo and AstraZeneca will jointly develop and commercialize trastuzumab deruxtecan as a monotherapy or a combination therapy worldwide, except in Japan where Daiichi Sankyo will maintain exclusive rights. Daiichi Sankyo will be solely responsible for manufacturing and the supply of trastuzumab deruxtecan. Under the terms of the agreement, AstraZeneca will pay Daiichi Sankyo an upfront payment of $1.35B. Contingent payments of up to $5.55B include $3.8B for achievement of future regulatory milestones and other contingencies, as well as sales-related milestones of up to $1.75B. Total payments under the agreement have the potential to reach up to $6.90B. The impact on Daiichi Sankyo’s consolidated results for the fiscal year ending March 31, 2019 is immaterial because the upfront payment will be booked in revenue over the period in which Daiichi Sankyo has contractual performance obligations under this collaboration. The collaboration is expected to contribute to enhancing the corporate and shareholder value of Daiichi Sankyo over the medium to long term.

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