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 - Free Report) and Cytokinetics, Incorporated (CYTK - Free Report) look more attractive in the pharma sector. Both carry a Zacks Rank #1 (Strong Buy).