Moderna signs a deal with CytomX cancer drug developer
Key Takeaways:
- On Thursday, Moderna Inc. disclosed a $35 million licencing agreement with CytomX Therapeutics, a company developing cancer-specific medications.
- In addition, Moderna stated that as part of the agreement, it would grant CytomX tier-based royalties on any products it releases to the market.
- Human cells are instructed to produce proteins that activate the immune system as part of an mRNA-based therapy or vaccine, which boosts the body’s defences.
Moderna Inc. announced a $35 million licencing agreement with cancer-focused drug developer CytomX Therapeutics on Thursday to collaborate on messenger RNA-based treatments for various diseases.
CytomX’s stock increased by more than 50% during extended trading.
In addition to the upfront payment, the company will receive $5 million in prepaid research funding. According to a joint statement from the companies, it will also be eligible for future milestone payments totalling up to $1.2 billion.
The announcement follows a month in which an experimental Moderna cancer vaccine based on mRNA technology was demonstrated effective against a specific type of skin cancer.
In exchange for access to CytomX’s Probody platform, which is used to create cancer therapies that target diseased tissues, Moderna will gain access to CytomX’s mRNA technology, which has been used to create COVID-19 vaccines.
In addition, Moderna said it would give CytomX tier-based royalties on any products that it releases into the market as part of the agreement. Additionally, the agreement allows the biotech firm to participate in future equity financing by CytomX.
Together, the businesses will search for novel treatments, with Moderna handling product testing on people and sales.
An mRNA-based therapy or vaccine stimulates the body’s defences by telling human cells to make proteins that can activate the immune system.
