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The ADRs of Adagene (NASDAQ:ADAG) have climbed ~17% in the pre-market Wednesday after the China-based clinical-stage biopharmaceutical company announced a partnership with Frech pharma giant Sanofi (NASDAQ:SNY) for the development and commercialization of certain immuno-oncology drugs.
Per the terms, using its SAFEbody technology Adagene (ADAG) is expected to run early-stage studies for masked monoclonal and bispecific antibodies for late-stage development and commercialization by Sanofi (SNY).
The deal covers two initial antibody candidates with an option for two additional candidates for exclusive development and commercialization by Sanofi (SNY).
In return, Adagene (ADAG) is entitled to $17.5M of upfront payment and milestone payments worth up to $2.5B. The company will also receive tiered royalties on global net sales of the products generated from the collaboration.
“Adagene’s antibody platform should help us to precisely target established, but poorly addressed oncology mechanisms with best-in-class medicines,” remarked Valeria Fantin, Global Head of Oncology Research, Sanofi.
In August, Adagene (ADAG) announced a partnership with Merck (NYSE:MRK) for a combination study involving its anti-CD137 IgG4 monoclonal antibody, ADG106, with the pharma giant’s blockbuster cancer therapy Keytruda.
