Calithera Buys Two Oncology Candidates From Takeda For $45M

Calithera Biosciences Inc CALA has agreed to acquire two clinical-stage cancer-focused compounds from Takeda Pharmaceutical Company Limited TAK.
The transaction terms include a total upfront cash payment to Takeda of $10 million and $35 million in Calithera Series A preferred stock.
Additionally, Takeda will be eligible to receive milestone payments across both programs.
Calithera will pay tiered royalties of high single-digits to low teens on future net sales.
The first compound, sapanisertib is a dual TORC 1/2 inhibitor that targets a key survival mechanism in KEAP1/NRF2-mutated tumor cells.
A Phase 2 study planned to begin in Q1 of 2022 in squamous NSCLC harboring an NRF2 mutation.
The second compound, mivavotinib is an SYK inhibitor that targets the constitutively active BCR pathway in many non-Hodgkin's lymphoma (NHL) cases.
Calithera plans to initiate a Phase 2 study of mivavotinib in 2022 for DLBCL with and without mutations in MyD88 and CD79.
Related: Calithera, Antengene Announce Licensing Agreement For CB-708 In Cancer Settings.
Price Action: CALA shares closed 1.47% lower at $2.01 on Monday.