Orum Therapeutics Announces a Global, Multi-Target License and Option Agreement with Vertex for the Use of Orum’s TPD²® Technology to Develop Novel Degrader-Antibody Conjugates
Orum Therapeutics has entered a global, multi-target license and option agreement with Vertex Pharmaceuticals (VRTX) for the use of Orum's TPD²® technology to develop novel degrader-antibody conjugates (DACs). The agreement focuses on discovering targeted conditioning agents for use with gene editing.
Key financial terms include:
- $15 million upfront payment to Orum
- Up to $310 million in potential option fees and milestone payments per target
- Tiered royalties on potential future global annual net sales
Vertex will be responsible for all research, development, and commercialization activities. The agreement covers up to three targets, with Vertex having the option to obtain worldwide, exclusive licenses for each target after the research period.
- Orum receives $15 million upfront payment
- Potential for up to $310 million in option fees and milestone payments per target
- Tiered royalties on potential future global annual net sales
- Agreement covers up to three targets
- Vertex, a leader in innovative medicines, selected Orum's technology
- None.
Vertex Pharmaceuticals' agreement with Orum Therapeutics is a strategic move that can potentially have substantial financial implications. The upfront payment of
The tiered royalties on future global annual net sales present a recurring revenue opportunity, dependent on the successful commercialization of the DACs. This agreement could bolster Orum's financial stability and provide significant potential upside if the DACs gain market approval and acceptance.
From Vertex's perspective, investing in Orum's technology aligns with its strategy of advancing cutting-edge therapies, particularly in gene editing. This could diversify Vertex's portfolio and enhance its competitive position in the biotech industry.
This partnership between Orum Therapeutics and Vertex Pharmaceuticals is particularly noteworthy from a scientific standpoint. Orum's TPD²® technology focuses on degrader-antibody conjugates (DACs), which are designed to degrade targeted proteins. This approach represents a novel therapeutic class and could revolutionize treatments, especially in gene editing applications. Vertex's involvement, given its successful track record with CRISPR/Cas9 therapies, provides validation for Orum’s technology.
This agreement allows Vertex to potentially create novel targeted conditioning agents, which could enhance the precision and efficacy of gene editing therapies. If successful, these DACs could lead to improved outcomes in treating genetic disorders, opening new avenues in personalized medicine. The backing of Vertex, a leader in innovative medicines, adds credibility and accelerates the development process, potentially speeding up the time to market for these therapies.
From a market perspective, this agreement between Orum Therapeutics and Vertex Pharmaceuticals is indicative of the growing trend in the biotechnology sector where large pharmaceutical companies seek partnerships with smaller, innovative biotech firms. This is driven by the need to diversify pipelines and access novel technologies that can address unmet medical needs.
Orum's TPD² technology and its application in gene editing represent areas with high growth potential. The market for gene editing therapies is expanding and collaborations like these are critical for advancing new treatments to commercialization. Tiered royalties on net sales also suggest confidence in the commercial potential of these therapies, assuming they pass regulatory hurdles and gain market acceptance.
For investors, such agreements often signal a positive outlook as they combine the innovation of smaller biotechs with the developmental and commercial strengths of established pharmaceuticals, potentially leading to high rewards if the partnership proves successful.
Orum to receive a
Following the research period for each target, Vertex will have the option to obtain a worldwide, exclusive license to research, develop, manufacture, and commercialize DACs developed with Orum’s TPD² technology for that target. Under the terms of this agreement, Orum will receive an upfront payment of
“Vertex is a leader in discovering and developing innovative medicines, including being the first to receive FDA approval of a CRISPR/Cas9 gene-edited therapy, and we are pleased they’ve selected Orum’s TPD² technology to discover novel targeted conditioning agents," said Sung Joo Lee, Ph.D., CEO and founder of Orum Therapeutics. “This agreement with Vertex creates the potential to treat patients in a novel indication space with our leading targeted protein degradation approach for an exciting new therapeutic class of degrader-antibody conjugates.”
About Vertex
Vertex is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases. The company has approved medicines that treat the underlying causes of multiple chronic, life-shortening genetic diseases — cystic fibrosis, sickle cell disease and transfusion-dependent beta thalassemia — and continues to advance clinical and research programs in these diseases. Vertex also has a robust clinical pipeline of investigational therapies across a range of modalities in other serious diseases where it has deep insight into causal human biology, including acute and neuropathic pain, APOL1-mediated kidney disease, IgA nephropathy, autosomal dominant polycystic kidney disease, type 1 diabetes, myotonic dystrophy type 1 and alpha-1 antitrypsin deficiency.
Vertex was founded in 1989 and has its global headquarters in
About Orum’s TPD² Approach
Orum’s unique Dual-Precision Targeted Protein Degradation (TPD²) approach builds novel targeted protein degraders combined with the precise tumor cell delivery mechanisms of antibodies to generate innovative, first-in-class, tumor-selective TPDs for the treatment of cancer. Orum has developed new molecular glue degrader payloads to specifically degrade an intracellular target protein within cancer cells via the E3 ubiquitin ligase pathway. Conjugated to antibodies, the payloads are designed to be delivered specifically to cancer cells and degrade the intracellular target protein and cause tumor cell death.
About Orum Therapeutics
Orum Therapeutics is a private, clinical-stage biotech pioneering the development of cell-specific, targeted protein degraders (TPD²®) and stabilizers (TPS²™) with the precision of antibody targeting to improve cancer treatment for more patients. The lead therapeutic candidate from the TPD² GSPT1 platform, ORM-5029, is in clinical development for the treatment of HER2-expressing solid tumors. The TPS² approach uses proprietary Cbl-b inhibitor payloads conjugated to immune cell- or tumor cell-targeting antibodies. Orum is located in
Orum Therapeutics Forward-Looking Statements
This press release contains forward-looking statements that are based on the current expectations and beliefs of Orum Therapeutics, Inc. (“Orum”). Statements in this release regarding matters that are not historical facts, including, but not limited to, statements relating to the potential therapeutic value of Orum’s technologies and TPD2 approach; the potential for successful completion of research and the exercise of any option; the potential for the payment of any option payments, milestones, or royalties; and the potential for clinical success for ORM-5029 are forward-looking statements. These forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include, without limitation, the uncertainty of success in research and development activities; risks related to clinical trials, including potential delays, safety issues, or negative results; business decisions made by Vertex; competition from alternative therapies; the risk that product candidates may not be successfully commercialized or adopted; and risks related to the recruitment and retention of key employees, fluctuating markets and economic conditions, health care reform, prices, and reimbursement rates. The forward-looking statements in this presentation speak only as of the date of this release, and Orum undertakes no obligation to update or revise any of the statements. Orum cautions investors not to place considerable reliance on the forward-looking statements contained in this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240716475713/en/
Corporate: Kyuri Kim, Ph.D., Senior Manager, Business Development, Orum Therapeutics, media@orumrx.com
Media: Jessica Yingling, Ph.D., President, Little Dog Communications Inc., +1-858-344-8091, jessica@litldog.com
Source: Orum Therapeutics
FAQ
What is the value of the upfront payment Orum Therapeutics will receive from Vertex (VRTX)?
How much could Orum potentially receive in milestone payments per target from Vertex (VRTX)?
What technology from Orum is Vertex (VRTX) licensing?
What is the purpose of the agreement between Orum and Vertex (VRTX)?
How many targets does the agreement between Orum and Vertex (VRTX) cover?
