Turning Point Inks Licensing Pact For Gastrointestinal Cancers Candidate

Turning Point Therapeutics Inc TPTX entered into an exclusive license agreement with LaNova Medicines Limited to develop and commercialize LM-302, in the U.S. and the rest of the world, excluding Greater China and South Korea.
LM-302 is a novel antibody-drug conjugate (ADC) targeting Claudin18.2, a protein expressed in many gastrointestinal cancers, including gastric, gastroesophageal junction, and pancreatic cancer.
LM-302, which going forward will be identified as TPX-4589, is currently in Phase 1 clinical trials in both the U.S. and China.
Related: Turning Point Reveals Topline Data From Pivotal Repotrectinib Trial In Lung Cancer Setting.
LaNova will receive an upfront payment of $25 million and will be eligible to receive up to an additional $195 million in milestone payments.
LaNova is eligible to receive commercial sales milestones and tiered royalties ranging from mid-single digit to mid-teens percentages on net sales.
Both parties agreed to potentially broaden the partnership by collaborating on up to three additional ADC programs.
Price Action: TPTX shares are down 10.50% at $30.01 during the market session on the last check Thursday.