Conduit Pharmaceuticals Enters into Exclusive License Agreement with AstraZeneca for Multiple Assets to Advance Potential First-in-Class Treatments

Rhea-AI Summary

Conduit Pharmaceuticals Inc. (Nasdaq: CDT) has entered into an exclusive license agreement with AstraZeneca for multiple assets. The deal includes rights to develop AZD1656 and AZD5658, both HK-4 glucokinase activators targeting autoimmune indications, and AZD5904, a myeloperoxidase inhibitor for idiopathic male infertility. These assets have shown favorable preclinical and Phase I data.

Conduit plans to initiate Phase II clinical trials in 2024 for autoimmune disorders. As part of the agreement, AstraZeneca will receive Conduit common stock and a share of future sublicense revenues. Conduit aims to fast-track development and bring innovative medicines to patients with unmet needs.

Positive

• Exclusive license agreement with AstraZeneca for multiple promising assets
• Assets have shown favorable preclinical and Phase I data
• Planned initiation of Phase II clinical trials in 2024
• Potential to develop first-in-class treatments for autoimmune disorders and idiopathic male infertility
• Access to AstraZeneca's pre-clinical and clinical data, as well as compound inventory

Negative

• Potential dilution of existing shareholders due to issuance of common stock to AstraZeneca
• Future revenue sharing with AstraZeneca may impact profitability
• AstraZeneca's right of first negotiation may limit future partnership opportunities

Insights

Pharmaceutical Industry Analyst

This licensing agreement between Conduit Pharmaceuticals and AstraZeneca is a significant development in the pharmaceutical industry. The deal involves three promising drug candidates - AZD1656, AZD5658 and AZD5904 - which have already shown favorable results in preclinical and Phase I trials.

The focus on autoimmune disorders, which affect 10% of the population, represents a substantial market opportunity. Conduit's strategy to fast-track these assets to Phase II trials could potentially accelerate the development timeline, bringing new treatments to market sooner.

Financially, the structure of the deal - involving stock issuance and revenue sharing - aligns the interests of both companies while minimizing upfront cash requirements for Conduit. This could be viewed positively by investors, as it preserves capital for clinical development.

However, investors should note that success in Phase II trials is important for Conduit's business model. The company's focus on acquiring partially developed assets and advancing them to potential exits carries both opportunity and risk.

Clinical Research Expert

The acquisition of these assets by Conduit Pharmaceuticals is intriguing from a clinical perspective. The HK-4 glucokinase activators (AZD1656 and AZD5658) and the myeloperoxidase inhibitor (AZD5904) represent novel mechanisms of action in their respective therapeutic areas.

The progression of AZD1656 and AZD5904 through Phase I trials by AstraZeneca provides a solid foundation for Conduit to build upon. This existing data significantly de-risks the early stages of development and allows for more informed Phase II trial designs.

The focus on autoimmune disorders and idiopathic male infertility addresses areas of significant unmet medical need. If successful, these compounds could indeed become first-in-class treatments, potentially offering new options for patients who may not respond to current therapies.

However, it's important to note that success in Phase I doesn't guarantee positive outcomes in Phase II. Conduit will need to carefully design their upcoming trials to maximize the chances of demonstrating efficacy in these complex disease areas.

Business Strategy Analyst

Conduit Pharmaceuticals' approach represents an interesting asset-light business model in the pharmaceutical industry. By acquiring partially developed assets, they aim to bypass the costly and time-consuming early stages of drug development.

This strategy could potentially accelerate time-to-market and reduce overall development costs. However, it also concentrates risk in the critical Phase II stage, which is often where many drug candidates fail.

The agreement with AstraZeneca appears well-structured, with Conduit gaining access to valuable clinical data and drug supplies. The right of first negotiation granted to AstraZeneca could be a double-edged sword - it might facilitate future deals but could also limit Conduit's options if more favorable partnership opportunities arise.

Investors should closely monitor Conduit's ability to execute on its planned Phase II trials and its success in attracting potential partners or buyers for these assets. The company's long-term success will depend on its ability to consistently identify and acquire promising assets, then successfully advance them through mid-stage clinical development.

• Conduit Pharmaceuticals enters into exclusive license agreement with AstraZeneca for HK-4 Glucokinase activators AZD1656 and AZD5658 targeting autoimmune indications and myeloperoxidase inhibitor AZD5904 targeting idiopathic male infertility
• Assets have shown favorable preclinical and Phase I data. Conduit to initiate Phase II clinical trials
  

SAN DIEGO and LONDON, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Conduit Pharmaceuticals Inc. (Nasdaq: CDT) ("Conduit" or the “Company”), today announced that the Company has entered into an agreement with AstraZeneca to exclusively license rights to develop AZD1656 and AZD5658, both HK-4 glucokinase activators, and AZD5904, a myeloperoxidase inhibitor (MPO). AstraZeneca had progressed AZD1656 and AZD5904 through Phase 1 clinical trials.

Conduit initially intends to conduct Phase II clinical trials on clinical candidates AZD1656 and AZD5658 in 2024 for applications in autoimmune disorders, a category which affect an estimated 10% of the population¹.

Under the terms of the License Agreement, AstraZeneca will grant Conduit an exclusive license to both AZD1656 and AZD5658 for all human indications, as well as an exclusive license to AZD5904 for use in Idiopathic Male Infertility.

As part of the License Agreement, AstraZeneca will be issued shares of common stock in Conduit, and Conduit will also pay AstraZeneca a share of sublicense revenues, including upfront payments, milestones, and royalties received from future partners.

AstraZeneca will share pre-clinical and clinical data on the assets and supply Conduit with certain quantities of AZD1656, AZD5904, and AZD5658 from its inventory. The License Agreement also includes provisions for the transfer of know-how related to AZD1656, AZD5658 and AZD5904 from AstraZeneca to Conduit. AstraZeneca has been granted a right of first negotiation to develop, manufacture, and commercialize the licensed compounds if Conduit seeks to assign, license, or grant such rights to a third party.

Through the License Agreement, Conduit will analyze existing clinical data and initiate Phase II trials. Conduit believes this will fast-track the development of these compounds and bring innovative new medicines to patients facing substantial unmet needs.

"We are delighted to have entered into an agreement with AstraZeneca to secure the rights to develop AZD1656, AZD5658, and AZD5904. The potential of these assets to become important first-in-class medicines for patients is promising. Given the data from AstraZeneca’s clinical trials, we believe there is a strong rationale to initiate Phase II studies in multiple indications to progress to commercialization of these assets,” said Dr. David Tapolczay, Chief Executive Officer of Conduit.

Conduit departs from the traditional business model of shepherding assets through an entire commercial lifecycle by acquiring assets that have already undergone pre-clinical and clinical testing. The Company works towards accelerating the assets through Phase II trials and, if successful, intends to seek exits through third-party license opportunities.

About Conduit Pharmaceuticals

Conduit is a multi-asset, clinical stage, disease-agnostic life science company delivering an efficient model for compound development. Conduit both acquires and funds the development of Phase II-ready assets and then seeks an exit through third-party license deals following successful clinical trials. Led by a highly experienced team of pharmaceutical executives including Dr. David Tapolczay and Dr. Freda Lewis-Hall, this novel approach is a departure from the traditional pharma/biotech business model of taking assets through regulatory approval.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding Conduit's future results of operations and financial position, Conduit's business strategy, prospective product candidates, product approvals, research and development costs, timing and likelihood of success, plans and objectives of management for future operations, future results of current and anticipated studies and business endeavors with third parties, and future results of current and anticipated product candidates, are forward-looking statements. These forward-looking statements generally are identified by the words "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," "will be," "will continue," "will likely result," and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to; the inability to maintain the listing of Conduit's securities on Nasdaq; the ability to recognize the anticipated benefits of the business combination completed in September 2023, which may be affected by, among other things, competition; the ability of the combined company to grow and manage growth economically and hire and retain key employees; the risks that Conduit's product candidates in development fail clinical trials or are not approved by the U.S. Food and Drug Administration or other applicable authorities on a timely basis or at all; changes in applicable laws or regulations; the possibility that Conduit may be adversely affected by other economic, business, and/or competitive factors; and other risks as identified in filings made by Conduit with the U.S. Securities and Exchange Commission. Moreover, Conduit operates in a very competitive and rapidly changing environment. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond Conduit's control, you should not rely on these forward-looking statements as predictions of future events. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and except as required by law, Conduit assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Conduit gives no assurance that it will achieve its expectations.

Media
Sean Leous
ICR Westwicke
Sean.Leous@westwicke.com
+1.646.866.4012

Investors
Bill Begien
Conduit Pharmaceuticals Inc.
bb@conduitpharma.com

¹ https://www.thelancet.com/journals/lancet/article/PIIS0140-6736(23)00457-9/abstract

FAQ

What assets did Conduit Pharmaceuticals (CDT) license from AstraZeneca?

Conduit Pharmaceuticals (CDT) licensed AZD1656 and AZD5658 (HK-4 glucokinase activators) for autoimmune indications, and AZD5904 (myeloperoxidase inhibitor) for idiopathic male infertility from AstraZeneca.

When does Conduit Pharmaceuticals (CDT) plan to start Phase II clinical trials for the licensed assets?

Conduit Pharmaceuticals (CDT) plans to initiate Phase II clinical trials for AZD1656 and AZD5658 in 2024, targeting autoimmune disorders.

What compensation will AstraZeneca receive from Conduit Pharmaceuticals (CDT) for the licensed assets?

AstraZeneca will receive shares of Conduit Pharmaceuticals (CDT) common stock and a share of sublicense revenues, including upfront payments, milestones, and royalties from future partners.

What is Conduit Pharmaceuticals' (CDT) business model for developing these licensed assets?

Conduit Pharmaceuticals (CDT) aims to accelerate the assets through Phase II trials and, if successful, seek exits through third-party license opportunities, rather than shepherding assets through an entire commercial lifecycle.