On Thursday, Conduit Pharmaceuticals Inc. (NASDAQ:CDT) entered into an agreement with AstraZeneca Plc (NASDAQ:AZN) 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 2 clinical trials on candidates AZD1656 and AZD5658 in 2024 for applications in autoimmune disorders.
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 receive Conduit shares, 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 transferring 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.
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 2 trials and, if successful, intends to seek exits through third-party license opportunities.
Last month, Conduit Pharmaceuticals announced the approval of a composition of matter patent application by IP Australia, achieving the successful examination of a patent on its lead asset, an HK-4 Glucokinase Activator, targeting a range of autoimmune diseases.
Price Action: At last check Thursday, AZN stock was trading 0.52% lower at $80.20 during the premarket session. CDT stock closed at $0.17 on Wednesday.
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