The deal includes Denali’s preclinical Alzheimer’s projects, among other undisclosed candidates, which make use of the company’s antibody transport vehicles, or ATVs, to penetrate the blood-brain barrier.
According to the terms of the deal, Takeda is slated to make an initial payment of $150 million through a combo of upfront payments and purchase of Denali equity. Denali could also receive development and commercial milestone payments, including $90 million in preclinical milestones.
Denali is responsible for development activities and costs prior to filing an IND for the three programs, the companies reported. Takeda retains the option to co-develop and co-commercialize the three programs and if it chooses to do so, the companies will jointly conduct clinical development and share the costs.
Takeda and Denali plan to jointly commercialize products in the U.S. and China, but Takeda has exclusive commercialization rights in all other markets. The two companies will share global profits equally, they reported.
“This partnership further exemplifies Takeda’s continued commitment to developing genetically validated therapies for neurodegenerative diseases through an enhanced portfolio comprised of new modalities,” Emiliangelo Ratti, head of Takeda’s neuroscience therapy area, said in prepared remarks. “We are excited to partner with the Denali team, whose innovative technology is uniquely poised to deliver the next generation of antibody therapeutics for patients.”
“We are impressed with Takeda’s commitment to developing treatments for difficult to treat neurodegenerative diseases and look forward to partnering with them to bring medicines to patients,” Denali CEO Ryan Watts added. “Takeda has a great track record of partnering with biotech firms in addition to unique development expertise and a strong global commercial presence.”
DNLI shares were up 3.5% in mid-morning activity, trading at $16.64 apiece.