PRISM BioLab and Ono Pharmaceutical Co., Ltd. have successfully achieved the initial milestone in their oncology-focused drug discovery collaboration, with PRISM confirming receipt of the milestone payment on November 14, 2025. The partnership, formalized through a Joint Research and Licensing Agreement signed on April 25, 2024, leverages PRISM's proprietary PepMetics technology to target challenging protein-protein interactions (PPIs) in cancer drug development.
Significant Financial Impact
The milestone payment and joint research funding represent approximately 80% of PRISM's net sales for the previous fiscal year ending September 2025, according to the company's financial results released concurrently. While specific amounts remain undisclosed per agreement terms, the milestone payment will be recorded as business revenue in the first quarter of PRISM's fiscal year ending September 2026. Joint research funding will be allocated proportionally throughout the next phase of collaborative research.
PepMetics Technology Platform
PepMetics represents a unique class of small molecules designed to mimic three-dimensional structures of alpha-helix and beta-turn peptide structures commonly found in intracellular PPI interfaces and receptor-ligand interactions. The technology combines proprietary chemistry, specialized knowledge of PPI targets, and AI-supported design to deliver inhibitors of challenging PPI targets that were previously considered undruggable.
The platform's potential extends beyond traditional drug discovery limitations by converting previously undruggable PPIs into targets readily accessible to small molecules and generating oral small molecule alternatives for injectable biologics. This approach addresses a significant gap in current therapeutic options for patients suffering from cancer, autoimmune diseases, and fibrosis.
Collaborative Research Progress
The joint research project has progressed as planned under the collaboration of both companies, focusing on discovering clinical candidate compounds against targets proposed by Ono. The project will accelerate the search for clinical candidates through collaborative research leveraging PRISM's expertise in structural biology and computational chemistry.
"We are delighted to have achieved the first milestone in drug discovery research targeting previously challenging targets identified by Ono," said Dai Takehara, President & CEO of PRISM. "This first step toward creating innovative new drugs is the achievement of the collaborative efforts of researchers from both companies, and we are grateful for this opportunity. We will continue dedicating our full effort to this project to achieve research outcomes in the next stage."
Multiple Milestone Structure
The agreement stipulates multiple milestones throughout the drug discovery and development process. PRISM will receive milestone payments according to progress in drug discovery research and subsequent stages, including clinical development conducted by Ono. If clinical candidate compounds successfully lead to commercialization of new drugs, PRISM will receive royalties based on product sales.
Existing Clinical Pipeline
PRISM's PepMetics technology has already demonstrated clinical viability through existing partnerships. PepMetics targeting CBP/beta-catenin PPIs have been licensed to Eisai Co., Ltd. and Ohara Pharmaceuticals Co., Ltd., with compounds currently in clinical development for cancer and liver disease applications, respectively.
The achievement demonstrates the potential of PRISM's PepMetics technology platform and is expected to contribute to the company's long-term growth and enhancement of corporate value while advancing the development of groundbreaking new drugs in the oncology field.
