Otsuka Pharmaceutical Co., Ltd. (Otsuka) has entered into an asset purchase agreement with Cantargia AB (Cantargia) for the acquisition of assets related to CAN10. CAN10 is an IL-1RAP antibody in development as a drug candidate for the treatment of autoimmune diseases. Through the transaction, Otsuka will acquire the exclusive global rights to develop, manufacture, and commercialize CAN10 and associated assets.

CAN10 is a monoclonal antibody that targets IL-1RAP (Interleukin-1 Receptor Accessory Protein). IL-1 family cytokines, IL-1, IL-33, and IL-36, which play crucial roles in inflammatory responses, bind to their respective receptors and interact with IL-1RAP to transmit inflammatory signals into cells. These cytokines work together to worsen disease progression of autoimmune diseases. CAN10, as an IL-1RAP antibody, is expected to become a next-generation antibody drug that inhibits the interaction between IL-1RAP and these cytokines, thereby simultaneously blocking signaling of these IL-1 family cytokines. Cantargia is currently conducting Phase 1 trials (NCT06143371) to evaluate the safety and tolerability of CAN10 in healthy subjects, and has demonstrated the inhibition of IL-1β and IL-36 signals. Otsuka plans to continue developing CAN10 for the treatment of autoimmune diseases.

Based on this agreement, Otsuka will pay Cantargia U.S. $33 million upon closing and, future additional contingent payments. The completion of the transaction is subject to obtaining customary regulatory clearances.

Makoto Inoue, president and representative director of Otsuka Pharmaceutical Co., Ltd. commented, "Otsuka Pharmaceutical is expanding its research and development pipeline in the field of autoimmune diseases by leveraging the antibody drug platform of our U.S. subsidiary, Visterra, and the low-molecular-weight drug discovery platform of our U.S. subsidiary Jnana Therapeutics. This will further expand and accelerate our research and development portfolio targeting various pathways associated with autoimmune diseases, enabling us to contribute to the lives of more patients."

Cantargia's Interim Chief Executive Officer Damian Marron commented, "This is a transformative transaction for Cantargia and we hope for millions of patients suffering from severe immune inflammatory disorders." said Cantargia's Chief Executive Officer Damian Marron. "We are delighted that the strong potential of our CAN10 anti-IL1RAP antibody has been recognised by Otsuka Pharmaceutical. It demonstrates confidence in the strength of our world leading position in IL1RAP biology and antibodies and will allow us to drive forward our platforms and programs in oncology and other diseases."

Regarding Cantargia's IL-1RAP antibody portfolio

Cantargia is engaged in the research and development of multiple antibodies that inhibit IL-1RAP. Through this transaction, Otsuka will acquire CAN10, as well as 3G5* as a backup antibody. Additionally, for a specified period following the closing of the transaction, Otsuka will have exclusive first rights of negotiation regarding the next-generation IL-1RAP antibodies to be developed by Cantargia for a period of 2 years. Note that Cantargia retains all rights to Nadunolimab (CAN04), which it is developing for cancer treatment indications.

*3G5 is a pre-clinical IL1RAP targeting antibody which is similar to CAN10.

About Cantargia

Cantargia is a Swedish biotechnology company that specializes in the development of pharmaceuticals for various types of cancer and inflammatory/autoimmune diseases. It is a leading company in the development of antibodies targeting IL-1RAP. The company is listed on OMX Stockholm's Main List. For further information, please visit www.Cantargia.com.

About Otsuka

Otsuka Pharmaceutical Co., Ltd. is a total healthcare company that focuses on each individual's potential to enhance their well-being. Our medical-related business provides treatments and diagnostics for both physical and mental health. Our nutraceutical business supports daily health maintenance and improvement. Otsuka's unique products and services are based on scientific evidence, under the guidance of our corporate philosophy: Otsuka-people creating new products for better health worldwide.

For further information, please visit www.otsuka.co.jp/en/