ADC Therapeutics, Mitsubishi Tanabe Ink Zynlonta Licensing Pact In Japan

ADC Therapeutics SA ADCT has entered an exclusive license agreement with Mitsubishi Tanabe Pharma Corporation to develop and commercialize Zynlonta (loncastuximab tesirine-lpyl) for all hematologic and solid tumor indications in Japan.

• Under the agreement terms, ADC Therapeutics will receive an upfront payment of $30 million and up to an additional $205 million in milestones payments. 
• ADC Therapeutics will also receive sales-based royalties ranging in percentage from the high teens to the low twenties.
• Mitsubishi Tanabe will conduct clinical studies of Zynlonta in Japan and will have the right to participate in any global clinical studies of the product by bearing a portion of the costs of the study.
• In April 2021, the FDA granted accelerated approval to Zynlonta as the first and only CD19-targeted ADC as a single-agent treatment for adult patients with relapsed or refractory diffuse large B-cell lymphoma (DLBCL) after two or more lines of systemic therapy. 
• European application has been validated by the European Medicines Agency (EMA) and is under review by the EMA's Committee for Medicinal Products for Human Use (CHMP). 
• Price Action: ADCT shares closed lower by 9.32% at $17.22 on Friday.