IBIO - iBio Announces Sale of Preclinical PD-1 Agonist Antibody Program to Otsuka | Benzinga
– Deal includes $1 million upfront and potential future milestone payments –
– iBio's proprietary therapeutic pipeline will now be comprised entirely of promising immuno-oncology candidates –
BRYAN, Texas and SAN DIEGO, Feb. 26, 2024 (GLOBE NEWSWIRE) -- iBio, Inc. (NYSEA:IBIO) ("iBio" or the "Company"), an AI-driven innovator of precision antibody immunotherapies, announces today that it has entered into an asset purchase agreement ("Agreement") with Otsuka Pharmaceutical Co., Ltd. ("Otsuka"), pursuant to which Otsuka acquired iBio's assets related to its early-stage programmed cell death protein 1 ("PD-1" ) agonist program. The transaction closed on February 25, 2024.
Under the terms of the Agreement, iBio will receive an upfront payment of $1.0 million in cash at closing. iBio will also be eligible to receive additional contingent cash payments totaling up to $52.5 million upon the achievement of certain pre-specified clinical development and commercial milestones.
PD-1 is a pivotal checkpoint in the immune system, acting as a type of "off switch" that helps keep the cells from attacking other cells in the body. By agonizing or enhancing the signaling of PD-1, it is possible to temper the immune response, making it particularly valuable in the treatment of autoimmune diseases. In conditions where the immune system mistakenly wages war on the body's own cells, such as in autoimmune diabetes or lupus, therapies that target PD-1 can potentially reduce the severity of these autoimmune reactions. However, unlike PD-1 antagonists used in immuno-oncology, PD-1 agonists, like the one iBio is selling to Otsuka, are difficult to find.
"We believe this is an important transaction for iBio, and a win-win for both companies," said iBio's Chief Executive Officer and Chief Scientific Officer, Martin Brenner, DVM, Ph.D. "The deal provides iBio with a potential significant new source of non-dilutive capital if all of the milestones are satisfied; further validates the ability of our precision-driven ...