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Nona Biosciences Announces Global License and Option Agreement with AstraZeneca for Monoclonal Antibody to be Developed into Novel Tumor Targeted Therapies

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Nona Biosciences announced a global license and option agreement with AstraZeneca for the development of monoclonal antibodies into targeted cancer therapies. Under this deal, Nona will receive $19 million initially, with potential milestone payments totaling up to $575 million, and tiered royalties on net sales. Nona may also receive additional payments if AstraZeneca exercises further options. This partnership leverages Nona's antibody discovery platform alongside AstraZeneca's expertise in oncology.

Positive
  • Nona Biosciences to receive $19 million upfront.
  • Potential for up to $575 million in milestone payments.
  • Agreement includes tiered royalties on net sales.
  • Nona eligible for additional payments if AstraZeneca exercises options.
  • Collaboration validates Nona's antibody discovery platform.
  • Partnership with a globally recognized company in tumor-targeted therapies.
Negative
  • Future payments are contingent on achieving development, regulatory, and commercial milestones, adding uncertainty.
  • No immediate revenue beyond the initial $19 million payment.

The agreement between Nona Biosciences and AstraZeneca represents a significant financial milestone for Nona. An upfront payment of US$19 million, along with potential near-term payments of US$10 million and additional milestone payments up to US$575 million, is substantial for a company at Nona’s stage. Such financial backing can bolster their research and development activities. However, it’s important to consider the uncertainty associated with milestone payments, which depend on successful development and regulatory approvals. This can take years and is fraught with risks, including clinical trial failures or regulatory setbacks. Investors should thus balance the optimism from potential large rewards with the inherent risks in drug development.

From a medical perspective, the collaboration between Nona Biosciences and AstraZeneca is promising for oncology patients. Monoclonal antibodies have proven efficacy in targeting specific cancer cells, minimizing damage to healthy tissues. AstraZeneca’s expertise in tumor-targeted delivery can enhance the therapeutic potential of Nona’s antibodies. This could lead to the development of next-generation cancer treatments with better efficacy and safety profiles. However, it’s important to recognize that these therapies are in preclinical stages, meaning clinical benefits are yet to be validated through rigorous trials.

For investors, the strategic alliance signals AstraZeneca’s commitment to expanding its oncology portfolio. The partnership enhances Nona Biosciences' market reputation and provides a validation of its technologies. This collaboration can potentially increase Nona’s market valuation and investor interest, particularly if the antibodies progress successfully through clinical trials. However, the competitive landscape in oncology is fierce, with numerous companies vying for market share. Therefore, while the agreement is promising, its long-term success will depend on continuous innovation and successful market penetration.

CAMBRIDGE, Mass., May 22, 2024 /PRNewswire/ -- Nona Biosciences, a global biotechnology company providing a total solution from "Idea to IND" (I to ITM), ranging from target validation and antibody discovery through preclinical research, announced today that it has entered into a license agreement with AstraZeneca (LSE/STO/Nasdaq: AZN) for preclinical monoclonal antibodies that will be used to create targeted therapies in oncology.

Under the terms of the agreement, Nona Biosciences shall receive US$19 million upon completion of the transaction. Nona is eligible to receive an additional US$10 million in potential near-term milestone payments and up to US$575 million upon achieving specified development, regulatory, and commercial milestones, as well as tiered royalty payments on net sales. In addition, Nona is eligible to receive payments for the option programs should AstraZeneca exercise these options.

"We are delighted to announce this agreement with AstraZeneca, global leaders in developing tumor targeted therapies, to maximize the potential of our novel antibodies," said Jingsong Wang, M.D., Ph.D., Chairman of Nona Biosciences. "This agreement further validates our leading antibody discovery platform, and we look forward to seeing our antibodies developed into potential new medicines for cancer patients."

Puja Sapra, Senior Vice President, Tumour Targeted Delivery, Oncology R&D, AstraZeneca, said: "The global license agreement with Nona Biosciences is an exciting opportunity to further develop these antibodies derived from Nona's innovative biologics discovery engine into novel tumor targeted therapies using AstraZeneca's industry-leading capabilities."

About Nona Biosciences

Nona Biosciences (a wholly-owned subsidiary of HBM Holdings Limited, HKEX: 02142) is a global biotechnology company committed to cutting-edge technology innovation and provides a total solution from "Idea to IND" (I to ITM), ranging from target validation and antibody discovery through preclinical research. The integrated antibody discovery services range from antigen preparation, animal immunization, highly robust antibody screening, to antibody lead generation and engineering, developability assessment and pharmacological evaluation, leveraging advantages of Harbour Mice® technology and the experienced therapeutic antibody discovery team.

Harbour Mice® generate fully human monoclonal antibodies in a traditional two heavy and two light chain (H2L2) format, and a heavy chain only (HCAb) format. Integrating Harbour Mice® with highly robust antibody screening platforms, Nona Biosciences is focused on driving global inventions of transformative next-generation drugs. For more information, please visit www.nonabio.com and follow us on LinkedIn.

Cision View original content:https://www.prnewswire.com/news-releases/nona-biosciences-announces-global-license-and-option-agreement-with-astrazeneca-for-monoclonal-antibody-to-be-developed-into-novel-tumor-targeted-therapies-302153513.html

SOURCE Nona Biosciences

FAQ

What is the value of the upfront payment Nona Biosciences will receive from AstraZeneca?

Nona Biosciences will receive an upfront payment of $19 million from AstraZeneca.

What is the potential total value of milestone payments Nona Biosciences could receive?

Nona Biosciences could receive up to $575 million in potential milestone payments.

What is the stock symbol for AstraZeneca?

The stock symbol for AstraZeneca is AZN.

What type of therapies will be developed under the agreement between Nona Biosciences and AstraZeneca?

Monoclonal antibodies will be developed into targeted cancer therapies.

What could Nona Biosciences receive in addition to milestone payments?

Nona Biosciences is eligible for tiered royalties on net sales and additional payments if AstraZeneca exercises option programs.

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