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AstraZeneca In Deal To Develop, Commercialise Daiichi Sankyo's DS-1062 For Upfront Payment Of $1 Bln

AstraZeneca Plc. (AZN.L,AZN) announced Monday that it has entered into a new deal with Daiichi Sankyo Co., Ltd. to develop and commercialise new antibody drug conjugate.

The agreement is for DS-1062, Daiichi Sankyo's proprietary trophoblast cell-surface antigen 2 or TROP2-directed antibody drug conjugate (ADC) and potential new medicine for the treatment of multiple tumour types.

The companies will jointly develop and commercialise DS-1062 worldwide, except in Japan where Daiichi Sankyo will maintain exclusive rights.

Under the deal, AstraZeneca will pay Daiichi Sankyo an upfront payment of $1 billion in staged payments. This includes $350 million due upon completion, with $325 million after 12 months and $325 million after 24 months from the effective date of the agreement.

Further, AstraZeneca will pay additional conditional amounts of up to $1 billion for the successful achievement of regulatory approvals and up to $4 billion for sales-related milestones.

DS-1062 is currently in development for the treatment of multiple tumours that commonly express the cell-surface glycoprotein TROP2. Using Daiichi Sankyo's proprietary DXd ADC technology, DS-1062 is designed to deliver chemotherapy selectively to cancer cells and to reduce systemic exposure.

Sunao Manabe, President and CEO of Daiichi Sankyo, noted that DS-1062 is one of its lead DXd ADCs that will form a pillar of next mid-term business plan. It has the potential to become a best-in-class TROP2 ADC in multiple tumours, including lung and breast cancers.

AstraZeneca said the collaboration reflects its strategy to invest in antibody drug conjugates as a class, the innovative nature of the technology and the successful existing collaboration with Daiichi Sankyo.

Pascal Soriot, Chief Executive Officer, said, "We see significant potential in this antibody drug conjugate in lung as well as in breast and other cancers that commonly express TROP2. We are delighted to enter this new collaboration with Daiichi Sankyo and to build on the successful launch of Enhertu to further expand our pipeline and leadership in Oncology."

AstraZeneca said it now has six potential blockbusters in Oncology with more to come in early and late pipelines.

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