The company said that the sale extends its cash runway into the second half of 2027.
- ADX-097 is designed to inhibit complement activation, an integral part of the innate immune system, and has potential across kidney, autoimmune, vascular and skin diseases.
- Q32 Bio is also eligible to receive tiered royalties on potential future sales of ADX-097, ranging from low single-digit to mid-teen percentages.
- The company is now focussed on advancing Bempikibart for patients with alopecia areata.
Shares of Q32 Bio Inc. (QTTB) jumped 98% on Monday after the company sold its experimental drug ADX-097, to Akebia Therapeutics, Inc. (AKBA) for up to $592 million.
The company said that the sale extends its cash runway into the second half of 2027. ADX-097 is designed to inhibit complement activation, an integral part of the innate immune system, and has potential across kidney, autoimmune, vascular and skin diseases.
Terms Of The Deal
Akebia will now be responsible for future development and commercialization of ADX-097. Under the deal, Q32 Bio will receive $12 million in upfront payments and near-term milestone payments.
These payments as well as potential development, regulatory and commercial milestones total up to $592 million, the company said. Q32 Bio is also eligible to receive tiered royalties on potential future sales of ADX-097, ranging from low single-digit to mid-teen percentages.
ADX-097 is the lead product candidate from Q32 Bio’s tissue-targeted complement inhibitor platform. Q32 Bio, however, retains the rights to the platform, including ADX-096 being developed for ophthalmologic indications and other remaining early-stage assets and is continuing to evaluate strategic options for these programs.
The company is now focussed on advancing Bempikibart for patients with alopecia areata, an autoimmune disorder that causes the immune system to attack hair follicles, resulting in sudden, patchy hair loss, most commonly on the scalp.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around QTTB stock stayed within the ‘neutral’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.
A Stocktwits user sees the deal opening opportunities for the company.
QTTB stock is up by 26% this year but down by about 84% over the past 12 months.
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