TRACON Pharmaceuticals (NASDAQ:TCON) is up 39% premarket on signing a collaborative partnership agreement with 3D Medicines (Beijing) Co., Ltd. and Jiangsu Alphamab Biopharmaceuticals Co., Ltd., for the development of envafolimab, also known as KN035, a PD-L1 single-domain antibody administered by subcutaneous injection, for development in soft tissue sarcoma in North America.
TRACON will be responsible for the development and commercialization of envafolimab for sarcoma in North America, except in certain circumstances involving the approval of envafolimab for other indications, in which case TRACON has the option to co-market envafolimab. 3D Medicines and Jiangsu Alphamab will supply envafolimab at pre-negotiated prices.
If TRACON has responsibility for commercialization, it will owe 3D Medicines and Jiangsu Alphamab escalating double digit royalties ranging from the teens to mid-double digits.
If 3D Medicines and Jiangsu Alphamab have responsibility for commercialization, TRACON will be entitled to (a) double digit royalties if TRACON has chosen to not co-market envafolimab or (b) a 50% royalty if TRACON has chosen to co-market envafolimab in sarcoma.
TRACON intends to initiate a registration enabling study of envafolimab in the sarcoma subtype of UPS in 2020.
Shares are up 39% premarket.
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