China-based Adcoris has entered into an exclusive strategic partnership with Singapore's K2 Therapeutics for its first-in-class 5T4-targeting antibody-drug conjugate (ADC), ACR246. The transaction, structured as a NewCo model, provides Adcoris with an upfront cash payment, equity in the newly formed entity, potential milestone payments of up to USD 730 million and tiered global sales royalties in the double-digit percentage range. K2, backed by MPM BioImpact, gains global development and commercialisation rights to ACR246 and another bispecific ADC program.

ACR246 utilises a novel TopI inhibitor payload and has demonstrated a superior therapeutic window and safety profile in preclinical studies. The drug is currently in a Phase I/IIa trial in China, where early clinical data have shown promising safety and efficacy. The 5T4 antigen is highly expressed in various solid tumours and cancer stem cells, making it an ideal target for this next-generation ADC. K2 Therapeutics plans to initiate a global Phase Ib trial in 2027.

According to PharmCube's NextBiopharm® database, the value of the milestone payments alone would position this transaction as the second-largest in the 5T4 space. Click here to request a free trial for NextBiopharm®.