RESEARCH TRIANGLE PARK, N.C. - G1 Therapeutics, Inc. (NASDAQ:GTHX), a commercial-stage oncology company, has entered into a licensing agreement with Pepper Bio for the development and commercialization of lerociclib, a drug candidate for various cancer types. The agreement, which excludes the Asia-Pacific region, grants Pepper Bio rights to lerociclib for all indications except certain radioprotectant uses.
Lerociclib, a cyclin-dependent kinase inhibitor, has shown promise in clinical studies, particularly in hormone receptor-positive, HER2-negative metastatic breast cancer. The drug is also poised to enter Phase 2 clinical trials for hepatocellular carcinoma, the third leading cause of cancer-related deaths.
Pepper Bio's COMPASS platform, which integrates multiple layers of biological data, was instrumental in identifying CDK4 and CDK6 as targets for treating liver cancer. The preclinical models indicated lerociclib's superior efficacy compared to standard treatments.
Under the deal terms, G1 Therapeutics is set to receive upfront payments in the mid-single-digit millions within 12 months and could earn up to $135 million based on development and commercial milestones across three indications. Additionally, Pepper Bio will pay G1 double-digit royalties on lerociclib's annual net sales.
This agreement follows Pepper Bio's successful seed funding round and marks the company's first in-licensed therapeutic. It aligns with G1's strategy to partner for global access to its oncology therapies. The collaboration aims to advance lerociclib through clinical trials and regulatory approvals efficiently.
G1 Therapeutics retains rights to lerociclib in the Asia-Pacific region through a previous license to Genor Biopharma. The drug is currently under review in China for hormone receptor-positive, HER2-negative breast cancer.
The companies have expressed their commitment to innovation and the potential of lerociclib to address unmet needs in oncology. This news is based on a press release statement.
InvestingPro Insights
G1 Therapeutics, Inc. (NASDAQ:GTHX) has recently showcased strategic moves in the oncology sector, including the licensing agreement with Pepper Bio. As investors consider the potential of GTHX, several financial metrics and InvestingPro Tips provide a deeper understanding of the company's current financial health and market performance.
One notable InvestingPro Tip is GTHX's impressive gross profit margins, which have reached a significant 91.28% over the last twelve months as of Q4 2023. This suggests that the company's operations are highly efficient in terms of cost management relative to its revenue—a positive sign for investors looking for companies with strong operational performance.
Moreover, GTHX holds more cash than debt on its balance sheet, providing them with financial flexibility as they enter into new licensing agreements and continue to fund their clinical trials. This could be particularly reassuring for investors considering the potential risks associated with the biotech industry.
From a market performance perspective, GTHX's stock price movements have been quite volatile, with a 181.34% price total return over the last six months as of the date provided, indicating significant investor interest and market activity. This level of volatility underscores the importance of timely and informed investment decisions in the biotech sector.
InvestingPro Data also reveals that GTHX's Market Cap stands at approximately 197.19 million USD, and despite the company not being profitable over the last twelve months, with a P/E Ratio (Adjusted) of -4.11, the revenue growth has been robust at 60.84% over the same period.
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