ORIC Pharmaceuticals Inc (NASDAQ:ORIC) recently revealed that it signed an exclusive licensing deal with Voronoi, Inc., allowing it to access the exclusive rights to the EGFR/HER2 Exon 20 inhibitor.
The licensing agreement will allow Oric to access development and commercialization rights for ORIC-114, across the globe, including in Taiwan, Macau, Hong Kong, and the People’s Republic of China. These are territories where Oric commercializes its products. ORIC-114 is an orally available brain penetrant developed by Oric Pharma to counter human epidermal growth factor receptor 2 (HER2) and epidermal growth factor receptor (EGFR) in patients with exon 20 insertion mutations.
“ORIC-114 is well aligned with our mission of overcoming cancer resistance by leveraging our expertise in precision oncology and key tumor dependencies, and it puts us in position for three INDs or equivalents next year,” stated Oric Pharma’s CEO, Jacob Chacko.
Oric plans to commence a Phase 1/2 tumor-agnostic trial in which it will evaluate ORIC-114’s performance against genetically defined cancers. The company plans to run the clinical study in 2021, most likely during the second quarter. Dr. Chacko also stated that ORIC-114 aligns with his company’s success in creating therapies that target tumor-agnostic mutations.
Dr. Chacko noted that penetrant inhibitors from Voronoi will address unmet medical needs that do not have approved treatments. It will achieve this by targeting exon 20 insertion mutations with its brain penetrant inhibitors. Voronoi’s CEO, Daekwon Kim expressed excitement about collaborating with Oric to advance the development of the EGFR/HER2 exon 20 inhibitor program.
Voronoi to receive various milestone payments from Oric
Oric paid $5 million in cash to Voronoi as part of their licensing agreement. The deal will also feature a transfer of Oric shares worth $8 million to Voronoi. The common shares will be issued at a $28.24 per share which represents a 25% premium on the stock’s 30-day weighted average price. There will also be $111 million in milestone payments that Voronoi will receive upon the achievement of various development and regulatory milestones.
The deal also features sales milestones worth $225 million. Oric is also expected to pay $272 million to Voronoi upon the achievement of various success milestones.