Zai Lab Inks Back To Back Licensing Agreements For Cancer And Psychiatric Candidates

Zai Lab Limited ZLAB and Blueprint Medicines Corporation BPMC have announced an exclusive collaboration and license agreement in Greater China, including mainland China, Hong Kong, Macau, and Taiwan.
The agreement covers the development and commercialization of BLU-945 and BLU-701 for epidermal growth factor receptor (EGFR)-driven non-small cell lung cancer.
Blueprint Medicines will receive an upfront cash payment of $25 million and be eligible to receive up to $590 million in potential milestone payments.
Blueprint will also receive tiered sales-based royalties ranging from the low-teens to mid-teens.
In addition, Zai Lab will be responsible for all the development costs for BLU-945 and BLU-701 occurring in Greater China.
Separately, Zai Lab entered into a licensing agreement with Karuna Therapeutics Inc KRTX for KarXT (xanomeline-trospium) in Greater China for psychiatric conditions.
Karuna will receive a $35 million upfront payment and can receive up to an additional $80 million in milestone payments.
Karuna is also eligible to receive up to $72 million in sales milestones and low-double-digit to high-teens sales-based tiered royalties.
Price Action: BPMC shares traded 0.50% higher at $114 on the last check Tuesday.