(Sharecast News) - Hutchmed China announced on Friday that Inmagene Biopharmaceuticals has exercised options to licence two drug candidates, IMG-007 and IMG-004, as part of their strategic partnership.
The AIM-traded firm said the development stemmed from the collaboration initially announced on 11 January 2021.
Following the exercise of the options, Inmagene would gain an exclusive licence to further develop, manufacture and commercialise the drug candidates on a global scale.
In return, Hutchmed said it would receive ordinary shares representing 7.5% of fully diluted shares in Inmagene.
The partnership between Hutchmed and Inmagene granted the latter exclusive options for multiple drug candidates specifically tailored for the treatment of immunological diseases.
Since the execution of the agreement, Inmagene had assumed responsibility for funding and leading two of the candidates, IMG-004 and IMG-007, through clinical development.
For each of the drug candidates, Hutchmed said it stood to receive potential payments contingent on the achievement of development milestones, which could amount to up to $92.5m, as well as additional payments on reaching commercial milestones of up to $135m.
Moreover, Hutchmed said it would be entitled to royalties on the eventual commercialisation of the drug candidates.
In 2023, Inmagene commenced two global phase 2a clinical trials involving adults with moderate-to-severe atopic dermatitis and adults with alopecia areata.
The trials featured the investigational OX40 antagonistic monoclonal antibody (mAb) IMG-007.
In addition, Inmagene successfully completed a phase one single ascending dose study for IMG-004.
IMG-004 is a reversible, non-covalent, highly selective oral BTK inhibitor designed to target immunological diseases.
"This is an important step for the progress of these two drug candidates in immunological diseases and demonstrates the potential of the candidates discovered by Hutchmed," said chief executive and chief scientific officer Dr Weiguo Su.
"The success of this strategic partnership provides further validation of Hutchmed's in-house research and development engine and our collaborative approach to developing some of our innovative drug candidates.
"We look forward to continuing our partnership with Inmagene and seeing the impact these drug candidates could have for patients with immunological diseases."
At 1019 GMT, shares in Hutchmed China were down 1.58% at 198.81p.
Reporting by Josh White for Sharecast.com.
Hutchmed (HCM)