Astellas Pharma agreed to pay up to US$1.34 billion, excluding royalties, for future rights to a preclinical cancer treatment from Audax Biosciences. Audax is a Melbourne-based immunotherapy start-up founded by researchers Jai Rautela and Nicholas Huntington. The treatment has not yet been tested in humans.
Deal terms
The agreement includes US$285 million in upfront and potential option exercise payments. Audax may also receive up to US$1.05 billion in development and commercial milestone payments. Astellas would gain a worldwide license to develop and make the therapy if human trials succeed.
Company origins
The company was founded in 2018 and was previously called oNKO-Innate. It has been largely self-funded and has only raised small amounts from private investors. The founders reinvested proceeds and built a small Melbourne-based immunology team.
How the treatment works
Audax bioengineered an anti-cancer agent called interleukin-12. The molecule, DAX-44, helps the immune system recognize and attack solid tumors. It is designed to avoid severe side effects and help patients who do not respond to existing immunotherapies.
The deal will let Audax start Phase 1 trials next year. Audax would also have an option to co-fund and promote the therapy in Australia. The company is working on other undisclosed programs across immune-related diseases.