13 January 2021 - - US-based biotechnology company KSQ Therapeutics has entered into a broad strategic collaboration with Japan-based Takeda Pharmaceutical company Ltd. to research, develop and commercialize novel immune-based therapies for cancer, the company said.

Under the agreement, KSQ has granted Takeda an exclusive, worldwide, royalty-bearing license to develop, manufacture and commercialize cell and non-cell therapy products that modulate targets identified using KSQ's CRISPRomics technology.

The deal includes two T-cell targets previously identified and validated by KSQ, with the potential to introduce two additional T-cell targets to the collaboration.

The companies will also collaborate to discover and develop therapeutics that modulate natural killer cell targets to be identified through the collaboration.

Under the terms of the agreement, upfront and potential preclinical milestones have the potential to exceed USD 100m.

In addition, KSQ will be eligible for additional option payments along with development and commercialization milestone payments.

Depending on the target, these option and milestone payments can reach up to more than USD 400m per program. KSQ is also eligible to receive tiered royalties on net sales of each approved product.

KSQ and Takeda can collaborate on IND-enabling activities, with clinical development led by Takeda to explore multiple modalities.

Takeda will assume responsibility for funding all development and commercialization activities. KSQ will have the option to participate in cost/profit sharing on one of the two products based on the T-cell targets previously identified and validated by KSQ, in the US and retain royalties on all ex-US sales for that product.

KSQ Therapeutics is advancing a pipeline of tumor- and immune-focused drug candidates for the treatment of cancer across multiple drug modalities including targeted therapies, adoptive cell therapies and immuno-therapies.