Zai Lab Inks Back To Back Licensing Agreements For Cancer And Psychiatric Candidates

  • Zai Lab Limited ZLAB and Blueprint Medicines Corporation BPMC have announced an exclusive collaboration and license agreement in Greater China, including mainland China, Hong Kong, Macau, and Taiwan.
  • The agreement covers the development and commercialization of BLU-945 and BLU-701 for epidermal growth factor receptor (EGFR)-driven non-small cell lung cancer.
  • Blueprint Medicines will receive an upfront cash payment of $25 million and be eligible to receive up to $590 million in potential milestone payments.
  • Blueprint will also receive tiered sales-based royalties ranging from the low-teens to mid-teens. 
  • In addition, Zai Lab will be responsible for all the development costs for BLU-945 and BLU-701 occurring in Greater China.
  • Separately, Zai Lab entered into a licensing agreement with Karuna Therapeutics Inc KRTX for KarXT (xanomeline-trospium) in Greater China for psychiatric conditions.
  • Karuna will receive a $35 million upfront payment and can receive up to an additional $80 million in milestone payments. 
  • Karuna is also eligible to receive up to $72 million in sales milestones and low-double-digit to high-teens sales-based tiered royalties.
  • Price Action: BPMC shares traded 0.50% higher at $114 on the last check Tuesday.
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