BioCentury
ARTICLE | Company News

Kite, Fosun deal

January 13, 2017 7:57 PM UTC

Kite and Fosun formed the JV Fosun Pharma Kite Biotechnology Co. Ltd. (Shanghai, China) to develop Kite's lead chimeric antigen receptor (CAR) T cell immunotherapy candidate, axicabtagene ciloleucel (KTE-C19), in China. The JV may also opt to develop additional Kite candidates. The two companies will share equal ownership in the JV, with Fosun receiving 60% of profits and Kite 40%. Kite will receive $40 million up front and is eligible for up to $35 million in milestones related to axicabtagene ciloleucel, plus mid-single-digit royalties. Fosun will also provide $20 million for clinical development and manufacturing.

The JV will have options to license KITE-439 and KITE-718, two T cell receptor (TCR) candidates from Kite, for up to $140 million plus profit sharing and mid-single-digit royalties. KITE-439, a TCR-based therapy directed against E7 transforming protein (human papillomavirus-16; HpV16gp2), is in preclinical testing. Kite submitted an IND for KITE-718, with Phase I testing expected in the "coming months." The TCR-based therapy that targets melanoma-associated antigen 3/6 (MAGEA3/A6) is being developed to treat solid tumors, including bladder, esophageal, head and neck, lung and ovarian cancers...