Hutchmed strikes collaboration deal with Epizyme

(Sharecast News) - Commercial-stage biotechnology company Hutchmed China announced a collaboration to research, develop, manufacture and commercialise 'Tazverik' in Greater China on Monday, including mainland China, Hong Kong, Macau and Taiwan.
The AIM-traded firm described Tazverik as a methyltransferase inhibitor of EZH2 developed by Epizyme, that is approved by the United States Food and Drug Administration (FDA) for the treatment of certain patients with epithelioid sarcoma (ES), and certain patients with follicular lymphoma (FL).

It was approved under FDA accelerated approval based on its overall response rate and duration of response in January and June 2020 for ES and FL, respectively.

Under the terms of the new agreement, Hutchmed said it would be responsible for the development and commercialisation of Tazverik in the Greater China region.

Epizyme would receive a $25m upfront payment, and would be eligible to receive up to an additional $110m in development and regulatory milestone payments, across up to eight potential indications, and up to an additional $175m in sales milestone payments.

Epizyme would also be eligible to receive tiered royalties of mid-teen to low-twenties percentages, based on annual net sales of Tazverik in the region.

In addition, Hutchmed would receive a four-year warrant to acquire up to $65m of Epizyme shares at $11.50 per share.

The upfront payment would be funded from Hutchmed's existing cash resources, with potential milestone payments and royalties expected to be funded from future cash resources, including cash from sales of Tazverik.

Hutchmed was planning to develop and seek approval for Tazverik in various hematological and solid tumours, including ES, FL and diffuse large b-cell lymphoma in the territory.

It would also participate in Epizyme's global registrational study of Tazverik in combination with R2 in second line FL, the EZH-302 study, and lead the study in the Greater China region.

The parties also intended to conduct additional global studies jointly, with Hutchmed to generally be responsible for funding all clinical trials of Tazverik in the territory, including the portion of global trials conducted within it.

On the awarding of any approvals, Hutchmed would be responsible for commercialisation in the designated territory, and would also hold rights to research and manufacture Tazverik in Greater China.

"We view the activity of Tazverik and its epigenetic mechanism in controlling the expression of certain genes as highly complementary and potentially synergistic with our broad portfolio of novel oncology assets," said Hutchmed chief executive officer Christian Hogg.

"Tazverik's potential for broad applicability and favourable safety profile may provide further inhibition of tumour growth and metastasis when used in combination therapy."

Hogg said the collaboration would accelerate the exploration of the clinical potential of EZH2 inhibition in multiple tumour types, including both hematological malignancies and solid tumours.

"We believe that Epizyme and Hutchmed are uniquely positioned to realise these opportunities and thereby rapidly benefit as many patients, both inside and outside China, as possible."

At 1152 BST, shares in Hutchmed China were up 0.82% in London, at 607.92p.