Medicus Pharma Ltd. (NASDAQ:MDCX) secured on Wednesday an exclusive, sublicensable global license from Pfizer Inc. (NYSE:PFE) to develop, manufacture, and commercialize PF-08046031 (CD228V), an early clinical-stage antibody-drug conjugate targeting melanotransferrin.
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Melanotransferrin is a protein that in humans, is encoded by the MF12 gene. The protein is a cell-surface glycoprotein found on melanoma (a type of skin cancer) cells.
The co-development agreement grants Medicus full rights to utilize CD228V for the treatment, prevention, diagnosis, control and maintenance of all human diseases and disorders.
Financial Commitments and Billion-Dollar Milestones
To obtain the license, Medicus paid a $12 million non-refundable upfront fee to Pfizer and must pay another $15 million on the first anniversary.
To support initial progress, Pfizer delivered a $2 million development funding payment to Medicus, which must be applied solely toward executing the CD228V development plan.
Pfizer stands to gain development, regulatory, and sales milestone payments exceeding $1 billion if all target benchmarks across multiple indications are achieved. The pharmaceutical company is also eligible for low double-digit tiered royalties on annual net sales of CD228V products throughout the royalty term.
Operational Roles and Licensing Terms
Although Pfizer maintains patent ownership and participates in co-development oversight, Medicus retains sole authority and financial responsibility for manufacturing, regulatory approval, and commercialization efforts.
Pfizer holds the right to review budgets, receive progress reports, and elect to fund product development following the initiation of the first pivotal trial.
Additionally, Pfizer will receive a portion of specified proceeds in events involving sublicensing, strategic transactions, or a change of control at Medicus.
Unless terminated early, the contract remains effective on a product-by-product and country-by-country basis until the applicable royalty terms expire.
MDCX Stock Price Activity: Medicus Pharma shares were down 32.24% to 18 cents at the time of publication on Thursday, according to Benzinga Pro data.
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