The first-round of financing to the tune of $21 million (€20.6 million), for a drug to treat autoimmune disease, has been completed between Precision Autoimmune Therapeutics (PAT) and CASI Pharmaceuticals.
PAT will pay CASI a $5 million (€4.9 million) equivalent as the first instalment of the upfront payment of the sub-license agreement.
In May this year (2022) CASI and PAT entered into the worldwide agreement for the investigational anti-CD38 monoclonal antibody, CID-103, for the treatment, prevention, and diagnosis of autoimmune diseases, conditions, and disorders in humans.
CID-103 is a fully human IgG1 anti-CD38 monoclonal antibody that recognizes a unique epitope on CD38. It was engineered to have strong activity against CD38 malignant cells and to reduce certain safety issues observed with existing treatments.
Anti-CD38 monoclonal antibodies are targeted antibodies that bind to the CD38 protein which is expressed on a number of hematopoietic malignancies and tissues; as well as, some solid tumors.
CASI now holds 15 per cent equity stake in PAT.
Under the terms of the agreement, CASI maintains exclusive US commercialization and co-marketing rights of CID-103 in autoimmune indications in the United States. CASI also has the co-commercial rights in the autoimmune-derived hematology indications for CID-103 in China, but is not obligated to co-commercialize those programs.
Upon the completion of PAT’s first-round of financing, PAT will pay CASI US $5 million equivalent as the first part of two-installments upfront payment under the license agreement.
Wei-Wu He, CASI’s chairman and CEO, said: “The successful completion of PAT’s first-round financing allows PAT to move forward with the CID-103 autoimmune development program. By partnering with PAT, the development of CID-103 in the autoimmune indications will proceed external to CASI’s budget during a period of challenging biotech funding. Partnership with PAT will accelerate the development and potential commercialization of CID-103 in autoimmune disease, autoimmune-derived hematology indications, both are mutually beneficial to the PAT and CASI shareholders.”
PAT used to be known as Beijing Tianshi Tongda Pharmaceuticals Technology Co., Ltd., is a clinical stage drug development company focused on the precision therapeutics for patients with autoimmune and inflammatory diseases.
Through the High Dimension Precision Medicine (HDPM) platform, PAT significantly improves the success rate of innovative drug development. PAT aims to provide safer and more effective drugs for patients worldwide suffering from autoimmune and inflammatory diseases.
Preclinical data of CID-103 demonstrates enhanced activity against a broad array of malignancies which express CD38 and demonstrates a better preclinical safety profile when compared to other CD38 mAbs. These attributes offer the potential for accelerated development and regulatory review, including rapid advancement into earlier lines of therapy.