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Investing.com -- Shares of Alumis Inc. (NASDAQ:ALMS) surged 60% today following the announcement of a significant collaboration and licensing agreement with Kaken Pharmaceutical (TADAWUL:2070) for the development and commercialization of ESK-001 in dermatology in Japan. The deal, which could potentially bring Alumis up to $180 million in combined upfront, milestone, and royalty payments, has been well-received by the market as it underscores the commercial potential of Alumis’ leading candidate.
Under the agreement terms, Alumis will receive $40 million in upfront and near-term co-development payments, with the possibility of an additional $140 million in milestone and field option payments. Moreover, the company is set to receive tiered royalties on future sales, which range from the low double-digits to the twenties in percentage terms. Kaken will take over the clinical development, regulatory approvals, and commercialization of ESK-001 in Japan, while Alumis retains rights in all other regions.
The partnership leverages Kaken’s expertise in dermatology to advance ESK-001, a next-generation oral tyrosine kinase 2 (TYK2) inhibitor, which is currently being evaluated in the Phase 3 ONWARD clinical program for moderate-to-severe plaque psoriasis. The deal also provides an option for Kaken to license the drug for rheumatological and gastrointestinal diseases, highlighting the broader therapeutic potential of ESK-001.
Martin Babler, President and CEO of Alumis, expressed enthusiasm over the partnership, stating, "This partnership builds on the positive Phase 2 clinical data of ESK-001, our next-generation oral TYK2 inhibitor, supporting our objectives to unlock its full therapeutic potential and ensure ESK-001 is widely accessible to people with immune-mediated disorders around the world."
The collaboration aligns with Kaken’s strategic focus on novel dermatology treatments, as Hiroyuki Horiuchi, President of Kaken, acknowledges the potential of ESK-001 to meet diverse medical needs within dermatology and possibly beyond.
Alumis’ ESK-001 aims to correct immune dysregulation across various diseases driven by proinflammatory mediators. With its selective targeting, the drug is designed to deliver maximal inhibition while minimizing off-target effects. The Phase 3 trials, ONWARD1 and ONWARD2, are supported by positive data from the Phase 2 STRIDE clinical trial and the ongoing long-term OLE extension, which demonstrated ESK-001’s robust long-term clinical responses and tolerability.
Investors are closely monitoring Alumis’ progress, as the agreement with Kaken marks a pivotal step in the company’s global development strategy and could significantly impact its financial outlook.
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