HZNP - Horizon Q32 Bio team up to develop ADX-914 for autoimmune diseases

• Horizon Therapeutics ( NASDAQ: HZNP ) and Q32 Bio signed a collaboration and option agreement to develop ADX-914 for treating autoimmune diseases.
• Q32 expects to begin a phase 2 trial in atopic dermatitis (eczema) later this year and is planning to start a phase 2 study in a second autoimmune disease next year.
• Under the agreement, Horizon will fund development through completion of the two phase 2 trials of ADX-914, with Q32 being operationally responsible to carry out all program-related activities.
• Horizon will receive an option to acquire the ADX-914 program, exercisable through a period after the phase 2 trials are completed.
• During the option period, Q32 will receive $55M as initial consideration and staged development funding, of which Horizon expects to recognize $32.5M as R&D expenses in Q3 2022, and the remainder in 2023.
• Q32 may be eligible to receive up to an additional $645M in closing and milestone payments, and royalties on net sales, the companies said in an Aug. 15 press release.
• HZNP -1.96% to $66.15 premarket Aug. 15.

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