Taiwan-based AnnJi Pharmaceutical Co., Ltd has announced the signing of a licensing agreement with US firm Avenue Therapeutics Inc. (NASDAQ: ATXI) for its innovative small-molecule drug candidate AJ201, targeting the rare Kennedy’s disease. Under the agreement, AnnJi Pharma will receive up to USD 250 million in licensing fees, including an upfront payment and milestone payments, along with double-digit sales commissions. In return, Avenue Therapeutics will gain development rights to the drug in the United States and Europe. This transaction is hailed as the most valuable rare disease licensing deal for regional companies in recent years.
About Kennedy’s Disease and AJ201
Kennedy’s disease, also known as spinal and bulbar muscular atrophy (SBMA), is a rare and serious hereditary neuromuscular degeneration disease that primarily affects men aged 30 to 40. Patients eventually succumb to periodic inhalation pneumonia, and currently, there is no effective drug treatment available. AJ201, a first-in-class small molecule for the disease, is expected to conclude a Phase II clinical study during Q3 2023.
AnnJi Pharma’s Pipeline and Focus
Founded in 2014, AnnJi Pharma is dedicated to the development of small-molecule drugs targeting rare diseases, skin diseases, and neural diseases. The company plans to initiate Phase I clinical studies for AJ302 and AJ202 in chemotherapy-induced peripheral neuropathy (CIPN) and psoriasis, respectively, during Q4 2023 and Q3 2023.
Significance of the Agreement
This licensing agreement not only highlights the potential of AJ201 to address an unmet medical need but also underscores AnnJi Pharma’s commitment to advancing innovative treatments for rare diseases. The collaboration with Avenue Therapeutics is expected to accelerate the development and commercialization of AJ201, potentially improving outcomes for patients with Kennedy’s disease.-Fineline Info & Tech
