Adagene Announces Upto $25 Mln Investment From Sanofi, Stock Up In Pre-Market

(RTTNews) - Adagene Inc. (ADAG), Tuesday announced strategic investment of upto $25 million and option exercise by Sanofi (SNY).

As per the deal, Adagene will supply Sanofi with muzastotug to evaluate the safety, efficacy, pharmacokinetics and biomarker data in combination with other anticancer therapies in over 100 patients in a phase 1/2 clinical trial in advanced solid tumors.

Additionally, Sanofi has also exercised its option to select a third SAFEbody discovery program, utilizing Adagene's proprietary masking technology and antibody engineering expertise.

The biotechnology company intends to use the proceeds for funding purposes, including clinical development of muzastotug, an anti-CTLA-4 SAFEbody, through a randomized phase 2 trial in microsatellite stable colorectal cancer.

Notably, the proceeds from Sanofi along withe existing cash and cash equivalents, are expected to be sufficient to fund planned operations into 2027.

In the pre-market hours, ADAG is climbing 9.74 percent, to $2.14 on the Nasdaq.