Biopharmaceutical company 3-V Biosciences Inc revealed on Tuesday the launch of an exclusive license agreement for its first-in-class, Phase 2-ready drug candidate FASN (fatty acid synthase) inhibitor TVB-2640 (ASC40) for treating non-alcoholic steatohepatitis (NASH) in Greater China in partnership with Ascletis Pharma Inc.

The license agreement allows 3-V Biosciences to grant Ascletis with an exclusive license to develop, manufacture and commercialise ASC40 (TVB-2640) and related compounds in Greater China. 3-V Biosciences is eligible to receive development and commercial milestones as well as tiered royalties on future net sales of ASC40.

According to the companies, TVB-2640 is an orally bioavailable, first-in-class inhibitor of FASN, a key enzyme in the de novo lipogenesis (DNL) pathway and catalyzes the biosynthesis of palmitate, which can then undergo further modifications into other fatty acids and complex lipids. Dysregulation of FASN activity is found in liver diseases and cancer. NAFLD and the more advanced disease of NASH can progress to significant liver diseases, including cirrhosis and hepatocellular carcinoma.

Additionally, 3-V Biosciences has raised USD18m under its Series E financing led by new investor Ascletis and Qianhai Ark (Cayman) Investment Co Limited as well as existing investors New Enterprise Associates Inc (NEA) and Kleiner Perkins (KP). All investors have committed to fund an additional USD7m in a subsequent financing.

Proceeds of the financing may be used by 3-V Biosciences to support the continued development of TVB-2640, including its Phase 2 trials for NASH in the US and China.