Otsuka Pharmaceutical Co., Ltd. has entered into an asset purchase agreement with Swedish biotechnology company Cantargia AB to acquire worldwide rights to CAN10, a monoclonal antibody targeting IL-1RAP (Interleukin-1 Receptor Accessory Protein) for autoimmune disease treatment. The transaction includes a $33 million upfront payment and potential milestone payments up to $580 million, plus double-digit tiered earn-out payments from global product sales.
Novel Mechanism Targets Multiple Inflammatory Pathways
CAN10 represents a next-generation approach to treating autoimmune diseases by simultaneously blocking multiple inflammatory signals. The antibody targets IL-1RAP, which serves as a crucial component in the signaling pathways of IL-1 family cytokines including IL-1, IL-33, and IL-36. These cytokines play essential roles in inflammatory responses and work together to worsen disease progression in autoimmune conditions.
"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," according to Otsuka's announcement.
Clinical Development and Preclinical Evidence
Cantargia is currently conducting Phase 1 trials (NCT06143371) evaluating CAN10's safety and tolerability in healthy subjects. The ongoing clinical study has demonstrated the antibody's ability to inhibit IL-1β and IL-36 signals, validating its mechanism of action.
Preclinical studies have shown promising results across multiple inflammatory disease models. In vivo studies using a CAN10 surrogate antibody demonstrated significant reduction in disease development across various conditions including systemic sclerosis, psoriasis, psoriatic arthritis, atherosclerosis, myocarditis, and peritonitis.
Strategic Expansion of Autoimmune Portfolio
The acquisition aligns with Otsuka's broader strategy to expand its autoimmune disease research and development capabilities. Makoto Inoue, president and representative director of Otsuka Pharmaceutical, 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."
The deal will enable Otsuka to "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," Inoue added.
Comprehensive Asset Transfer and Future Rights
Beyond CAN10, the transaction includes acquisition of 3G5, a preclinical IL-1RAP targeting antibody that serves as a backup to CAN10. Additionally, Otsuka will have exclusive first rights of negotiation for next-generation IL-1RAP antibodies developed by Cantargia for a two-year period following the transaction's closing.
Cantargia retains all rights to Nadunolimab (CAN04), which the company continues developing for cancer treatment indications, allowing the Swedish biotech to maintain its oncology focus while monetizing its autoimmune assets.
Transaction Timeline and Regulatory Approval
The transaction is subject to customary regulatory clearances and closing conditions, with completion expected in the third quarter of 2025. Upon closing, Otsuka will assume full responsibility for CAN10's global development, regulatory approvals, manufacturing, and commercialization.
Damian Marron, Cantargia's Interim Chief Executive Officer, described the deal as "transformative" for both the company and patients. "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."
The acquisition represents a significant validation of Cantargia's IL-1RAP platform and provides substantial financial resources while allowing the company to focus on its remaining oncology programs and platform development.
