BeiGene has paid Zymeworks $40 million for the Asian rights to HER2-targeted bispecific antibodies ZW25 and ZW49. The agreement gives Zymeworks upfront cash, a potential ongoing income stream and a global development partner.
In return for the upfront and up to $390 million in milestones, BeiGene is gaining the rights to the two drugs in Australia, New Zealand and most of Asia, the exception being Japan. BeiGene will take responsibility for hustling the drugs through development and regulatory processes in these markets, leaving Zymeworks free to focus on the rest of the world.
Zymeworks will continue to lead development outside of BeiGene’s territories but will also receive support from its new partner. Data BeiGene generates on patients with HER2-expressing solid tumors in its territories will go into a global development data set, giving Zymeworks access to an additional source of information on the effects of its drugs in cancers of the breast, stomach and other organs. The global development collaboration was part of the appeal of the deal to Zymeworks.
“This collaboration allows Zymeworks to leverage BeiGene’s resources and expertise to accelerate the development of our most advanced product candidates and broaden our reach globally including in a key region of the world,” Zymeworks CEO Ali Tehrani said in a statement.
ZW25 and ZW49, Zymeworks’ lead and follow-up candidates, represent two different ways to treat cancers that express the HER2 protein. Starting with Roche’s Herceptin, a series of drugs have tried to treat cancers by taking advantage of weaknesses stemming from HER2 gene amplification. ZW25 and ZW49 build on this legacy.
Lead candidate ZW25 is a HER2-HER2 bispecific antibody. As ZW25 binds two HER2 nonoverlapping epitopes, Zymeworks thinks it can trigger a dual signal blockade that increases the removal of the protein from the cell surface and dials up effector function. ZW25 moved into phase 1 two years ago.
ZW49 adds another element to the mix. The drug has the same antibody framework as ZW25. The difference is ZW49 also features a cytotoxic payload. In theory, the design means ZW49 will retain the same mechanisms of action as ZW25 and unleash an additional barrage of therapeutic firepower through the drug conjugated to the antibody framework.
BeiGene picked up the rights to the drugs at the same time as it gained clearance to use Zymeworks’ Azymetric and EFECT platforms in the research and development of three bispecifics. The Chinese biotech is paying $20 million upfront, and committing to up to $702 million in milestones, to access the platforms.