Shattuck Labs enters license agreement with Ono Pharmaceutical

Shattuck Labs (STTK) announces a worldwide drug discovery collaboration with Ono Pharmaceutical (OPHLY) to generate novel bifunctional fusion proteins targeting certain pathways in autoimmune and inflammatory diseases. Under the terms of the agreement, Shattuck will receive an up-front payment and be eligible for success-based licensing, regulatory, and commercial milestone payments with a total value of up to $227M, as well as tiered royalties based on global net sales. Shattuck will lead discovery research of certain prespecified compounds directed toward a pair of targets selected by Ono from Shattuck’s pipeline of bifunctional fusion proteins, and Ono will cover all of Shattuck’s associated research and development expenses. Shattuck granted to Ono an exclusive option to develop and commercialize multiple products resulting from the collaboration agreement. Following an option exercise, Ono will be responsible for further development and commercialization worldwide.