Molecular Template shares surge on development deal with Takeda

Shares of Molecular Templates Inc (NASDAQ:MTEM) jumped on Wednesday after the company announced a joint development partnership with Takeda Phamaceutical Co Ltd (4502.T) of Japan in the treatment of multiple myeloma.

Under the agreement, Takeda will make an upfront payment of US$30mln, and Molecular Templates will be eligible to receive up to US$632.5mln in milestone payments if the company exercises its co-development option, or up to US$337.5mln in payments if the option is not exercised.

Molecular Template stock jumped 51.2% to trade at US$6.20 in the New York premarket. Shares of Takeda in Tokyo settled on Wednesday down 1% at 4,686 yen.

The companies will develop the CD38 engineered toxin bodies (ETBs) for the treatment of multiple myeloma. According to the Mayo Clinic, multiple myeloma is a cancer that forms in a type of white blood cell called a plasma cell. Multiple myeloma causes cancer cells to accumulate in the bone marrow, where they crowd out healthy blood cells.

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Multiple myeloma cells widely express the CD38 protein, making it an important target in the development of therapeutics for multiple myeloma, Molecular Templates said.

CD38-targeted ETBs recognize the protein and deliver a modified bacterial toxin that enters the myeloma cells and destroys them. Unlike other CD38-targeted therapies, ETBs are not reliant on the body’s own immune system for effectiveness, offering the potential of a broader response to the disease.

“We have worked closely with Takeda’s scientific team since October 2016 to develop CD38-targeted ETBs with substantial improvements over our own internal program, MT-4019,” said Eric Poma, Molecular Templates’ chief executive and scientific officer.

“Takeda’s expertise in multiple myeloma and strong antibody capabilities allowed us to develop CD38-targeted ETBs that, of the ones tested to date, are the most potent ETBs we have created with our platform,” he added.

Molecular Templates is a company focused on the discovery, development and commercialization of next-generation immunotoxins called ETBs for the treatment of cancers and other serious diseases. The company is based in Austin, Texas.

Story by ProactiveInvestors