J&J, Tracon deal
Johnson & Johnson’s Janssen Pharmaceutica N.V. unit granted Tracon exclusive, worldwide development rights to TRC253 (formerly JNJ-63576253) and TRC694 (formerly JNJ-64290694). The pharma’s J&J Innovation-JJDC venture arm made a $5 million equity investment in Tracon at $5.95 per share. The price is a 3% discount to Tracon’s close of $6.13 on Sept. 27, the day before the deal was announced.
In 1H17, Tracon plans to begin a Phase I/II trial of TRC253 to treat prostate cancer. Following the completion of the trial, Janssen has an exclusive option to reacquire rights to TRC253. If Janssen exercises the option, Tracon will receive $45 million up front and will be eligible for up to $137.5 million in regulatory and commercialization milestones, plus low single-digit royalties. If Janssen does not exercise the option, Tracon will retain worldwide development and commercialization rights and Janssen will be eligible for up to $45 million in development and regulatory milestones, plus low single-digit royalties. TRC253, a small molecule high affinity competitive inhibitor of wild-type androgen receptor and multiple androgen receptor mutations, is in preclinical testing. ...