Precision Autoimmune Therapeutics (PAT) has scooped up $21 million in first-round financing, allowing the Chinese company to make good on its promise to pay $5 million to U.S.-based CASI Pharmaceuticals for the license of an autoimmune disease drug.
In May, CASI granted PAT—under its previous name, Beijing Tianshi Tongda Pharmaceuticals Technology—the rights to its investigational anti-CD38 monoclonal antibody, CID-103, to treat autoimmune conditions. CASI retained the rights of the drug in autoimmune indications in the U.S., however, as well as co-commercial rights in autoimmune-derived hematology and oncology indications in China.
CID-103 is currently undergoing a phase 1 trial for multiple myeloma, according to ClinicalTrials.gov.
As part of the agreement, PAT agreed to pay for the rights with an upfront installment of $10 million in two parts. With its first-round financing signed off, PAT can now pay out the first of these installments.
The funding round gave PAT 140 million Chinese yuan ($21 million) and resulted in CASI holding a 15% stake in the company. The completion of the funding allows PAT to move forward with its CID-103 autoimmune development program, CASI CEO Wei-Wu He, Ph.D., said in a statement.
"By partnering with PAT, the development of CID-103 in the autoimmune indications will proceed external to CASI's budget during a period of challenging biotech funding,” the CEO said. “Partnership with PAT will accelerate the development and potential commercialization of CID-103 in autoimmune disease, autoimmune-derived hematology indications—both are mutually beneficial to the PAT and CASI shareholders."