In a groundbreaking development, C4 Therapeutics Inc witnessed a significant surge in its shares during early trading on Tuesday following the announcement of an exclusive license and collaboration agreement with Merck & Co Inc (NYSE:MRK). This clinical-stage biopharmaceutical company is set to venture into the realm of degrader-antibody conjugates (DACs), an emerging modality designed to selectively target and neutralize disease-causing proteins within cancer cells.
At the time of this publication, C4 Therapeutics Inc stock (CCCC) has witnessed a surge.
C4 Therapeutics Inc
Current Price: $2.12
Change : +0.94
Change (%): (79.66%)
Volume: 109.2M
Source: Tomorrow Events Market Data
As part of this collaboration, C4 Therapeutics is slated to receive an upfront payment of $10 million, with the potential to rake in milestone payments totaling approximately $600 million. Additionally, the company is entitled to tiered royalties on future sales, marking a pivotal financial milestone for C4 Therapeutics.
Expressing his enthusiasm, C4 Therapeutics CEO Andrew Hirsch stated, “We are thrilled to collaborate with Merck to innovate within the growing field of antibody-drug conjugates and evaluate the potential for combining the catalytic efficiency, potency, target specificity, and durability of degraders with the specific binding and delivery capabilities of antibodies.”
C4 Therapeutics emphasized that the initial focus of this collaboration will be on one oncology target exclusive to the partnership. However, Merck holds the option for three additional targets, potentially resulting in option exercise payments, as well as additional milestones and royalties.
Should Merck choose to exercise all of its options to extend the collaboration, C4 Therapeutics stands to gain up to a staggering $2.5 billion in potential payments across the entire partnership, according to information provided by the company.
In further details disclosed by C4 Therapeutics, it was revealed that the company will leverage its proprietary TORPEDO platform to develop degrader payloads during the discovery phase. Simultaneously, Merck will take charge of antibody conjugation to create DACs in the discovery phase and will be responsible for advancing these DAC candidates through preclinical and clinical development, ultimately leading to the commercialization of the innovative therapeutic solutions.
This strategic partnership between C4 Therapeutics and Merck underscores a commitment to advancing the field of antibody-drug conjugates, merging the catalytic efficiency of degraders with the specific binding and delivery capabilities of antibodies. The collaboration not only holds immense promise for patients battling cancer but also positions both companies at the forefront of innovation within the biopharmaceutical landscape.
Investors and stakeholders are closely watching the developments as C4 Therapeutics and Merck embark on this pioneering journey, anticipating the potential impact on the treatment landscape for cancer and the broader biopharmaceutical industry.
