Innate Pharma Expands Oncology Development Collaboration With AstraZeneca

(RTTNews) - Innate Pharma SA (IPHYF.PK) on Tuesday announced a new multi-term agreement with British drug major AstraZeneca plc (AZN, AZN.L), and its global biologics research and development arm MedImmune (MEDI), building on an existing collaboration.

The company noted that the agreement is aimed at accelerating each company's oncology portfolio and bringing new medicines to patients more quickly.

The extended collaboration will enable Innate to develop its commercial footprint and strengthen its ability to invest in its immuno-oncology or IO pipeline and R&D platform. It will also enrich AstraZeneca's IO portfolio with preclinical and clinical potential new medicines.

Under the terms of the agreement, Innate will license the U.S. and EU commercial rights to AstraZeneca's recently FDA-approved Lumoxiti, or moxetumomab pasudotox-tdfk, for hairy cell leukemia or HCL.

AstraZeneca will also obtain full oncology rights to the first-in-class humanised anti-NKG2A antibody, monalizumab, thus expanding its partnership with Innate from the initial collaboration announced in 2015. NKG2A is a checkpoint receptor expressed on tumor infiltrating cytotoxic T-cells and natural killer (NK) cells that inhibits their anti-cancer functions.

Further, AstraZeneca will gain option rights to IPH5201, an antibody targeting CD39, as well as four pre-clinical molecules from Innate's pipeline. AstraZeneca will pay Innate $50 million upfront plus an option exercise fee, milestones, and royalties. Innate will have the potential for co-promotion and profit sharing in the EU.

Given the long-term collaboration between the two companies, AstraZeneca will also acquire a 9.8 percent equity stake in Innate Pharma through the issuance of 6.26 million new shares to AstraZeneca at 10 euros per share.

The new shares will be issued pursuant to the 26th resolution of Innate Pharma's May 29, 2018 shareholders' meeting. Issuance of the new shares is expected to take place on or about 25th October 2018.