(By Balaseshan) Arrowhead Research Corp. (NASDAQ: ARWR), a clinical stage targeted therapeutics company, said it has entered into collaboration and license agreement with Shire AG (NASDAQ: SHPG) to develop peptide-targeted therapeutics. Following the news, shares soared 10% in premarket.
The company and Shire to develop and commercialize targeted peptide-drug conjugates (PDCs) by utilizing Arrowhead's human-derived Homing Peptide platform and Shire's therapeutic payloads.
Arrowhead will receive research funding and could be eligible for development, regulatory, and commercialization milestone payments of up to $32.8 million for each development candidate, plus additional milestone payments for a second indication, and royalties on worldwide sales. Additional financial terms of the agreement were not disclosed.
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Under the agreement, Arrowhead will identify peptides that selectively bind and internalize in an undisclosed tissue type and that are capable of delivering a therapeutic payload to that tissue.
The company will receive funding for its internal and external research program-related costs and Shire will have an option to obtain an exclusive license to develop and commercialize a therapeutic agent targeted by the designated peptides and be responsible for clinical development and commercialization of products arising from the collaboration.
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Arrowhead's Homing Peptides comprise a library of human-derived peptide sequences that have been shown to localize to specific tissues in the human body. This platform enables the creation of guided therapeutics that specifically target tissues of interest while sparing off-target issues.
ARWR closed Monday's regular session at $2.50. The stock has been trading between $2.05 and $7.31 for the past 52 weeks.