Zymeworks and Daiichi Sankyo expand I-O collaboration

Canada’s Zymeworks (TSX: ZYME) and Japan’s Daiichi Sankyo (TYO: 4568) have entered into a new license agreement, expanding their immuno-oncology (I-O) deal focused on bispecific antibodies and building on their 2016 cross-licensing and collaboration agreement.  

“With a successful track record and our first bispecific antibody incorporating the Azymetric and EFECT technology having achieved a key research milestone in 2017, we look forward to adding two more bispecific compounds to our pipeline,” said Antoine Yver, executive vice president and global head, oncology R&D, Daiichi Sankyo. “We are exceptionally impressed with the robust impact that Zymeworks’ technology brings to antibody development.”

Shares of Zymeworks were up 2.9% at $16.50 in morning trading.

Deal could be worth $485 million to Zymeworks

Under the terms of the second agreement, Daiichi Sankyo will acquire licenses to Zymeworks’ Azymetric and EFECT technology platforms to develop two additional bispecific antibody therapeutics. In exchange, Zymeworks will receive an upfront technology access fee of $18 million and may receive up to $466.7 million in potential clinical, regulatory and commercial milestone payments. In addition, Zymeworks will receive up to double-digit tiered royalties on global product sales.