San Francisco’s biopharma company RAPT Therapeutics Inc (NASDAQ: RAPT) started the work week with a substantial stock surge. The 113 per cent spike was attributable to a food allergy medication licensing deal and a US$150-million-dollar private placement.
RAPT now has development and commercialization rights for “JYB1904” — a drug developed by China’s pharmaceutical operator Jiangxi Jemincare Group (Jemincare). The private placement came from a group of investors through a funding round led by California’s venture capital firm The Column Group.
RAPT will pay Jemincare an initial US$35 million for the license followed by up to US$672.5 million in milestone payments. Jemincare is currently completing Phase II studies on the therapeutic for asthma in China. A second portion of the trial next year will be concerned with food allergy treatment.
Phase III studies will still need to be conducted. RAPT will be entitled to develop and commercialize JYB1904 everywhere except China, Taiwan, Hong Kong and Macau.
It is being examined as a potential alternative to the Xolair (omalizumab) drug manufactured by Novartis AG (NYSE: NVS) and the Roche Holdings AG Basel ADR Common Stock (OTCMKTS: RHHBY) subsidiary Genentech.
“Omalizumab’s rapid uptake in food allergy since its approval earlier this year confirms the high unmet need and large opportunity in this growing market,” RAPT chief executive, Brian Wong, explained in a press release.
JYB1904 has more than double the half life of Xolair and extended pharmacokinetics and pharmacodynamic properties, RAPT claims.
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RAPT bails on dermatitis drug trial after it destroys participant’s liver
This unfortunate incident occurred in February. “Zelnecirnon” was being evaluated for the skin condition atopic dermatitis (AD), and asthma.
“Both trials were placed on clinical hold by the U.S. Food and Drug Administration due to a serious adverse event of liver injury requiring transplant in one patient in the AD trial,” RAPT specified in a statement on Nov. 11 as it announced the discontinuation of the program.
Aside from developing drugs for allergies, asthma and skin conditions, RAPT focuses on treating multiple cancers with its “Tivumecirnon” therapeutic. This lead drug candidate is being evaluated for non-small cell lung cancer, lymphoma and stomach cancer in Phase II studies.
Jemincare is one of China’s top 10 pharmaceutical companies, having been in business since 1999.
Its drugs treat everything from cancer and heart disease to hepatitis and hemorrhoids.
rowan@mugglehead.com
