Jazz Pharmaceuticals Enters Definitive Agreement with Redx Pharma to Acquire Global Rights to KRAS Inhibitor Program
- Jazz Pharmaceuticals plc is expanding its pipeline of targeted oncology therapies through the acquisition of Redx Pharma plc's KRAS inhibitor program.
- The agreement includes an upfront payment of $10 million to Redx, with the potential for up to $870 million in milestone payments.
- Jazz will be responsible for advancing preclinical KRAS candidates through IND-enabling studies, clinical development, regulatory activities, manufacturing, and commercialization.
- Redx is eligible for royalties based on any future net sales resulting from the collaboration.
- The transaction aims to address the high unmet need for innovative treatment options for cancer patients.
- None.
Insights
The agreement between Jazz Pharmaceuticals and Redx Pharma represents a significant strategic move with potential financial implications for both entities. The upfront payment of $10 million, while modest relative to the total potential deal value, provides immediate liquidity to Redx and underscores the value attributed to their KRAS inhibitor program. The contingent nature of the remaining $870 million, tied to development, regulatory and sales milestones, creates a structured incentive for Redx to support Jazz in advancing the program successfully through the clinical and regulatory pipeline.
For Jazz, the deal diversifies their oncology portfolio and potentially enhances their long-term revenue stream through the addition of novel therapies. However, investors should be aware of the risks inherent in drug development, particularly in the highly competitive and scientifically challenging field of targeted oncology. The tiered, mid-single digit percentage royalties suggest a conservative but potentially steady income for Redx, contingent on successful commercialization.
Overall, the deal could be seen as a positive sign for Jazz's commitment to expanding their pipeline, but the long-term payoff is uncertain and hinges on clinical success, regulatory approval and market penetration of the drug candidates.
KRAS mutations are known to play a significant role in the development of various cancers, making them a high-priority target for new oncology therapies. Jazz Pharmaceuticals' acquisition of Redx's KRAS inhibitor program suggests a focus on addressing a substantial unmet need in cancer treatment. The KRAS G12D mutation, in particular, is prevalent in pancreatic cancer and difficult to target, which has made the development of effective therapies a challenge.
The collaboration to advance preclinical KRAS candidates through IND-enabling studies indicates a commitment to rigorous scientific research. If successful, these therapies could provide new treatment options for patients with limited alternatives. However, the path from preclinical to commercialization is fraught with scientific and regulatory hurdles and the clinical efficacy and safety of these molecules remain to be established in human trials.
The oncology market is highly competitive, with numerous companies seeking to develop targeted therapies for cancer patients. Jazz Pharmaceuticals' deal with Redx Pharma positions them within the burgeoning segment of KRAS-targeted treatments, which has seen increased interest following the approval of the first KRAS inhibitor by the FDA. This strategic move could potentially place Jazz in direct competition with larger pharmaceutical companies that are also developing KRAS inhibitors.
From a market perspective, the success of Jazz's KRAS program will depend not only on clinical outcomes but also on their ability to navigate market dynamics, including pricing, market access and competition. The partnership with Redx, which has a history of medicinal chemistry expertise, could enhance Jazz's capabilities in drug discovery and development, potentially leading to a more robust pipeline and a stronger competitive position in the oncology market.
Redx to receive
Preclinical program expands Jazz's pipeline of targeted oncology therapies
"KRAS is a well-validated oncology target and there remains a high unmet need for innovation in this area based on challenges in developing molecules to target specific KRAS mutations. Redx has discovered a number of preclinical KRAS candidates and we plan to leverage our collective oncology development expertise to identify and advance the most promising molecules toward the clinic," said Robert Iannone, M.D., M.S.C.E., executive vice president, global head of research and development of Jazz Pharmaceuticals. "This transaction further expands our early-stage oncology pipeline, and we are excited to explore novel approaches to improving treatment options for cancer patients."
Lisa Anson, Chief Executive Officer of Redx, commented: "Once again, our distinguished expertise in medicinal chemistry has been recognized and we are pleased to secure another strategic transaction with Jazz, with whom we have a track record of collaboration. This agreement will allow us to collaborate on the advancement of novel KRAS inhibitors and we look forward to supporting Jazz in progressing these candidates through IND-enabling studies. Partnerships remain a key pillar of our corporate strategy, allowing us to advance what we believe are differentiated molecules in areas of high unmet need, while also creating long-term shareholder value through non-dilutive funding, with the upfront milestone payment from this agreement extending our current cash runway into 2025."
Transaction Terms
Under the terms of the agreement, Jazz will make an upfront payment to Redx of
As part of a separate collaboration agreement, signed in parallel, Jazz will pay Redx to perform research and preclinical development activities with the goal of completing IND-enabling studies for both KRAS profiles.
About KRAS Inhibitors
Rat sarcoma virus (RAS) is the most frequently mutated oncogene across different cancer types, with KRAS mutations accounting for approximately
About Jazz Pharmaceuticals plc
Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. We are dedicated to developing life-changing medicines for people with serious diseases—often with limited or no therapeutic options. We have a diverse portfolio of marketed medicines and novel product candidates, from early- to late-stage development, in neuroscience and oncology. Within these therapeutic areas, we are identifying new options for patients by actively exploring small molecules and biologics, and through innovative delivery technologies and cannabinoid science. Jazz is headquartered in
About Redx Pharma Plc
Redx Pharma (AIM: REDX) is a clinical-stage biotechnology company focused on the discovery and development of novel, small molecule, targeted therapeutics for the treatment of fibrotic disease, cancer and the emerging area of cancer-associated fibrosis. Redx aims to progress its programmes to clinical proof of concept before evaluating options for further development and potential value creation. The Company's lead fibrosis product candidate, the selective ROCK2 inhibitor, zelasudil (RXC007), is in development for interstitial lung disease and is undergoing a Phase 2a trial for idiopathic pulmonary fibrosis (IPF) with topline data expected in H1 2024. The Company's second fibrosis candidate, RXC008, a GI-targeted ROCK inhibitor for the treatment of fibrostenotic Crohn's disease, is progressing towards the clinic with a Clinical Trial Application (CTA) submitted during Q4 2023.Redx's lead oncology product candidate, the Porcupine inhibitor RXC004, being developed as a targeted treatment for Wnt-ligand dependent cancers, is expected to report anti-PD-1 combination Phase 2 data during the first half of 2024, following which Redx will seek a partner for ongoing development.
The Company has a strong track record of discovering new drug candidates through its core strengths in medicinal chemistry and translational science, enabling the Company to discover and develop differentiated therapeutics against biologically or clinically validated targets. The Company's accomplishments are evidenced not only by its wholly-owned clinical-stage product candidates and discovery pipeline, but also by its strategic transactions, which includes the sale of pirtobrutinib (RXC005, LOXO-305), the only non-covalent or reversible BTK inhibitor now approved by the US FDA, and transactions with both AstraZeneca and Jazz Pharmaceuticals.
To subscribe to Email Alerts from Redx, please visit: www.redxpharma.com/investor-centre/email-alerts/.
Jazz Investor Contact:
Andrea N. Flynn, Ph.D.
Vice President, Head, Investor Relations
Jazz Pharmaceuticals plc
InvestorInfo@jazzpharma.com
Jazz Media Contact:
Kristin Bhavnani
Head of Global Corporate Communications
Jazz Pharmaceuticals plc
CorporateAffairsMediaInfo@jazzpharma.com
Redx Contacts:
Caitlin Pearson
Head of Communications
Redx Pharma
Matt Davis/ Adam Dawes
SPARK Advisory Partners (Nominated Adviser)
Claes Spång/ Satheesh Nadarajah/ David Wilson
WG Partners LLP (Joint Broker)
Rupert Dearden/Freddy Crossley/Emma Earl
Panmure Gordon (
Simon
FTI Consulting
View original content to download multimedia:https://www.prnewswire.com/news-releases/jazz-pharmaceuticals-enters-definitive-agreement-with-redx-pharma-to-acquire-global-rights-to-kras-inhibitor-program-302055488.html
SOURCE Jazz Pharmaceuticals plc
FAQ
What is the ticker symbol for Jazz Pharmaceuticals plc?
What is the upfront payment made by Jazz to Redx for the acquisition of the KRAS inhibitor program?
What is the potential total milestone payment that Redx can receive from Jazz?
What is the responsibility of Jazz in the collaboration with Redx?
What is Redx eligible for in terms of royalties from the collaboration?
