Zai Lab Limited (ZLAB), a biopharmaceutical company, and Vertex Pharmaceuticals Inc. (VRTX), a biotechnology company, on Friday, announced an exclusive collaboration and licensing agreement for the development and commercialization of Vertex's investigational drug, Povetacicept or pove, in mainland China, Hong Kong, Macau, Taiwan, and Singapore.
Povetacicept is a dual antagonist of BAFF and APRIL, designed to treat Immunoglobulin A nephropathy or IgAN and other B cell-mediated diseases. A phase III clinical trial of Povetacicept in IgA nephropathy, dubbed RAINIER, is ongoing.
Under the agreement, Vertex will receive an upfront payment along with regulatory milestone payments and tiered royalties on net sales in the licensed regions.
Zai Lab will be responsible for advancing clinical trials, making regulatory submissions, and managing all commercialization activities in the territory if povetacicept is approved.
"This collaboration with Vertex represents a major step forward in our commitment to addressing unmet medical needs in immunology, and we are excited to bring povetacicept to patients in China and beyond," said Samantha Du, CEO of Zai Lab.
Vertex's CEO, Reshma Kewalramani, added, "Zai Lab's deep expertise and infrastructure make them the ideal partner to bring povetacicept to patients in the region, accelerating our efforts to provide this potential best-in-class therapy to those in need."
Cash position:
As of September 30, 2024, Zai Lab had $716.1 million in cash while Vertex Pharma's cash balance was $11.2 billion.
ZLAB closed Wednesday's (Jan.08,2025) trading at $24.30, down 5.85%. In premarket trading Friday, the stock is down 1.23% at $24.00.
VRTX closed Wednesday's (Jan.08,2025) trading at $412.11, up 0.93%. In premarket trading, the stock is down 0.20% at $411.29.
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