Equillium, Ono enter exclusive itolizumab option and asset purchase pact

Equillium and Ono Pharmaceutical announced an option and asset purchase agreement through which Ono gains the exclusive option to purchase Equillium’s rights to itolizumab, a first-in-class monoclonal antibody targeting CD6. These rights include all therapeutic indications and the rights to commercialize itolizumab in the United States, Canada, Australia, and New Zealand. Under the terms of the agreement, Equillium will receive a non-refundable upfront payment of approximately $26M and will also be eligible to receive up to an aggregate of approximately $138.5M for exercise of the option and milestone payments from development through first commercial sale. Equillium will be responsible for the conduct of all research and development of itolizumab, which will be fully funded by Ono on a quarterly basis commencing July 1 through the option period. The option period will expire three months following delivery of topline data from the EQUALISE study in lupus nephritis and interim data from the EQUATOR Phase 3 study in acute GVHD.