Back to top

Analyst Blog

Zacks Equity Research

Takeda and Resolve Join Forces

CYTK LCI

 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Takeda Pharmaceutical Company Limited recently entered into a collaboration agreement with privately held biotechnology company, Resolve Therapeutics, for the development of treatments for lupus including systemic lupus erythematosus (SLE) and other autoimmune diseases.

Resolve Therapeutics’ pipeline includes RSLV-132 and several other candidates in the pre-clinical proof-of-concept stage. RSLV-132 is expected to enter clinical development during the course of the year for SLE.

As per the terms of the agreement, Takeda will make an initial payment of $8 million to Resolve Therapeutics for the development of RSLV-132. Resolve Therapeutics will be entirely responsible for the development of RSLV-132 and other candidates under the collaboration till the completion of first phase Ib/IIa trial, after which Takeda has an option to license the candidates.

If Takeda elects to exercise this option for any candidate, the company will bear the lead responsibility for its global development and commercialization. Upon exercising this option, Takeda will be obligated to pay an option exercise fee and additional development milestones of approximately $247 million to Resolve Therapeutics. Apart from this, Takeda will also pay royalties on the net sales of products developed under this collaboration.  

We note that last month, Takeda suffered a setback when the company along with partner Affymax, Inc. recalled all lots of Omontys (peginesatide) voluntarily. The recall was prompted by data from post-marketing studies which revealed that fatal reactions including anaphylaxis were found to be associated with the use of Omontys. Omontys received approval in the US, in Mar 2012, for the treatment of anemia due to chronic kidney disease (CKD) in adult patients on dialysis.

Takeda Pharma carries a Zacks Rank #3 (Hold). Lannett Company, Inc. (LCI - Snapshot Report) and Cytokinetics, Incorporated (CYTK - Snapshot Report) look more attractive in the pharma sector. Both carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%