C4X Discovery shares jump after it signs AstraZeneca deal worth up to US$402mln

C4X Discovery Holdings PLC (AIM:C4XD) shares soared more than 25% higher after announcing it had signed an exclusive worldwide licensing agreement with AstraZeneca worth up to US$402mln, for developing and commercialising its NRF2 Activator programme.  

AstraZeneca will develop and commercialise an oral therapy treating inflammatory and respiratory diseases with a lead focus on chronic obstructive pulmonary disease (COPD).

Under the terms of the agreement, C4XD will receive pre-clinical milestone payments worth up to US$16mln ahead of the first clinical trial, including US$2mln upfront. 

In addition, C4XD is eligible to receive a further potential US$386mln in clinical development and commercial milestones and tiered mid-single digit royalties upon commercialisation.

Dr. Clive Dix, chief executive of C4XD, said: "Drug discovery is inherently scientifically complex, and it is through our unique expertise and proprietary cutting-edge technologies that C4XD is yet again proving itself as an exemplar in this field.

“I know that in AstraZeneca's hands, with their scientific, technical and commercial expertise, our NRF2 Activator programme has the potential to deliver life-changing treatments for the millions of patients suffering with COPD across the world."

Sir Mene Pangalos, executive vice president at AstraZeneca, added: "Our alliance with C4XD adds an important new asset to our portfolio to push the boundaries of science by targeting underlying disease drivers to potentially modify the course of these diseases."

This latest tie-up is one of three the company has inked with established players in the drug sector.

In 2018 it teamed up with Indivior in the field of addiction in a deal worth up to US$284mln, while it also partnered with Sanofi targeting inflammatory diseases under an agreement worth as much as US432mln.

29 Nov 2022

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