Benzinga | Mar 8, 2021 10:17AM EST

CASI Pharmaceuticals To Develop CB-5339 In Cancer Indications In China

* Cleave Therapeutics Inc has out-licensed CB-5339 to CASI Pharmaceuticals Inc (NASDAQ: CASI) in mainland China, Taiwan, Hong Kong, and Macau.

* Cleave and CASI will develop CB-5339 in both hematological malignancies and solid tumors under the terms of the agreement, with CASI responsible for development and commercialization in China and associated markets.

* Cleave will receive a $5.5 million upfront payment and is eligible to receive up to $74 million in milestone payments plus tiered royalties in the high-single to mid-double-digit range on net sales of CB-5339.

* Additionally, CASI will invest $5.5 million in Cleave through a convertible note.

* CB-5339 is a small oral molecule VCP/p97 inhibitor.

* It is in the Phase 1 trial in patients with acute myeloid leukemia and myelodysplastic syndrome. The National Cancer Institute is sponsoring and evaluating CB-5339 in Phase 1 trial of patients with solid tumors and lymphomas.

* Price Action: CASI shares are up 1.98% at $2.32 on the last check Monday.