OSAKA, Japan - Takeda Pharmaceutical Company (NYSE:TAK) Limited (TSE:4502/NYSE:TAK) and AC Immune SA (NASDAQ:ACIU) have entered into an exclusive global option and license agreement focused on the development of ACI-24.060, a potential Alzheimer's disease treatment. AC Immune will receive an upfront payment of $100 million with the possibility of earning up to approximately $2.1 billion in additional milestones.
ACI-24.060 is an active immunotherapy candidate targeting toxic amyloid beta (Abeta) forms associated with Alzheimer's disease progression. The ongoing ABATE Phase 1b/2 trial is evaluating its safety, tolerability, and efficacy in patients with prodromal Alzheimer's disease and adults with Down syndrome. Encouraging immunogenicity and safety profiles have been reported, with no concerns raised by safety monitoring boards thus far.
Under the terms of the agreement, AC Immune retains responsibility for completing the ABATE trial, while Takeda, upon exercising its option, will oversee further clinical development, regulatory activities, and global commercialization. AC Immune stands to receive tiered double-digit royalties on worldwide net sales post-commercialization.
Dr. Andrea Pfeifer, CEO of AC Immune, highlighted the partnership's potential to expedite Phase 3 development and enhance funding for early-stage pipelines. Sarah Sheikh, Head of Neuroscience Therapeutic Area Unit at Takeda, expressed enthusiasm for the novel treatment approach, which could significantly benefit the Alzheimer's community.
The collaboration aligns with Takeda's strategic vision and developmental expertise in neuroscience, aiming to address debilitating illnesses like Alzheimer's disease. The agreement's effectiveness is subject to regulatory clearances, including the expiration of waiting periods under the Hart-Scott-Rodino Act.
This partnership not only represents a significant financial opportunity for AC Immune but also underscores the ongoing efforts by pharmaceutical companies to address the complex challenge of neurodegenerative diseases. The results from the ABATE trial's six-month and 12-month Abeta positron emission tomography (PET) imaging are anticipated in the second and fourth quarters of 2024, respectively.
This news release is based on a press release statement issued by AC Immune and Takeda.
InvestingPro Insights
As AC Immune SA (NASDAQ:ACIU) embarks on a pivotal partnership with Takeda Pharmaceutical for the development of a novel Alzheimer's treatment, investors are closely monitoring the company's financial health and stock performance. AC Immune's market capitalization stands at $217.03 million, reflecting investor sentiment and the market's valuation of its potential. Despite a significant revenue growth of 276.14% in the last twelve months as of Q1 2023, the company grapples with challenges such as a negative gross profit margin of -268.93% and an operating income margin of -362.3%, indicating substantial costs outweighing revenues.
InvestingPro Tips suggest that AC Immune holds more cash than debt on its balance sheet, which can be a cushion against financial uncertainties as it progresses through costly clinical trials. Moreover, the company's stock is currently in oversold territory according to the Relative Strength Index (RSI), which may interest investors looking for potential rebounds. However, it's important to note that analysts do not expect the company to be profitable this year, and they anticipate a sales decline in the current year.
For those considering an investment in AC Immune, InvestingPro provides additional insights. There are six more InvestingPro Tips available, offering a deeper analysis of the company's financials and market performance. These tips could be particularly valuable given the recent agreement with Takeda and the ongoing development of ACI-24.060. Interested readers can explore these additional tips on InvestingPro's dedicated page for AC Immune at https://www.investing.com/pro/ACIU. To access the full suite of features, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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