Benzinga | Jun 1, 2021 07:32AM EDT

Mirati Therapeutics And Zai Lab Enter Into Collaboration To Develop And Commercialize Adagrasib In Greater China; Mirati To Receive $65M Upfront Payment And Up To $273M In Potential Milestones



Mirati Therapeutics, Inc. (NASDAQ:MRTX), a clinical-stage targeted oncology company, and Zai Lab Limited (NASDAQ:ZLAB, HKEX: 9688))))), an innovative commercial-stage biopharmaceutical company, today announced the companies have entered into a collaboration and license agreement for adagrasib, a small-molecule KRASG12C inhibitor, in Greater China (mainland China, Hong Kong, Macau and Taiwan).

"We believe Zai Lab is an ideal partner to enable us to expand and accelerate Mirati's global adagrasib development," said Charles M. Baum, M.D., Ph.D., president and chief executive officer, Mirati Therapeutics, Inc. "Zai Lab has an established record of rapid and high quality development and commercialization of innovative oncology product candidates in China. Their capabilities position Mirati to further develop adagrasib for patients with cancer who harbor the KRASG12C mutation around the world."

"We are delighted to collaborate with Mirati to bring adagrasib to patients in need in Greater China as soon as possible," said Samantha Du, Ph.D., founder, chairperson, and chief executive officer of Zai Lab. "Lung cancer is the most common cancer in China, and we aim to make adagrasib an important product in our growing lung cancer franchise. We are also excited about the potential of adagrasib to treat colorectal, pancreatic and other cancers characterized by KRASG12C mutations."

Under the terms of the agreement, Zai Lab obtains the right to research, develop, manufacture and exclusively commercialize adagrasib in Greater China. Zai Lab will support accelerated enrollment in key global, registration-enabling clinical trials of adagrasib in patients with cancer who have a KRASG12C mutation.

Mirati has an option to co-commercialize in Greater China and retains full and exclusive rights to adagrasib in all countries outside of Greater China. Mirati will receive a $65 million upfront payment, with the potential to receive up to an additional $273 million in development, regulatory and sales-based milestone payments. Mirati is also eligible to receive high-teen- to low-twenties-percent tiered royalties based on annual net sales of adagrasib in Greater China.