Benzinga | Oct 19, 2021 06:51AM EDT

Calithera Buys Two Oncology Candidates From Takeda For $45M

* Calithera Biosciences Inc (NASDAQ:CALA) has agreed to acquire two clinical-stage cancer-focused compounds from Takeda Pharmaceutical Company Limited (NYSE:TAK).

* The transaction terms include a total upfront cash payment to Takeda of $10 million and $35 million in Calithera Series A preferred stock.

* Additionally, Takeda will be eligible to receive milestone payments across both programs.

* Calithera will pay tiered royalties of high single-digits to low teens on future net sales.

* The first compound, sapanisertib is a dual TORC 1/2 inhibitor that targets a key survival mechanism in KEAP1/NRF2-mutated tumor cells.

* A Phase 2 study planned to begin in Q1 of 2022 in squamous NSCLC harboring an NRF2 mutation.

* The second compound, mivavotinib is an SYK inhibitor that targets the constitutively active BCR pathway in many non-Hodgkin's lymphoma (NHL) cases.

* Calithera plans to initiate a Phase 2 study of mivavotinib in 2022 for DLBCL with and without mutations in MyD88 and CD79.

* Related: Calithera, Antengene Announce Licensing Agreement For CB-708 In Cancer Settings.

* Price Action: CALA shares closed 1.47% lower at $2.01 on Monday.