C4 Therapeutics, Inc. (NASDAQ: CCCC) shares are evidently sustaining the upward momentum initiated on Tuesday. Presently, C4 Therapeutics stock exhibits a 17.09% surge, reaching $2.74 in the pre-market session as of the last check. In the previous trading session, CCCC stock observed a noteworthy ascent of 98.31%, concluding the session at $2.34. This notable upswing ensued subsequent to the establishment of a strategic business collaboration.
C4 Therapeutics (CCCC) has formalized an exclusive license and collaboration accord with Merck, known as MSD beyond the confines of the U.S. and Canada. The focal point of this agreement is the development of degrader-antibody conjugates (DACs), an emerging modality tailored to selectively combat and neutralize pathogenic proteins within cancer cells.
The partnership between C4 Therapeutics and Merck is poised to innovate within the expanding domain of antibody-drug conjugates, exploring the synergies between the catalytic efficiency, potency, target specificity, and durability of degraders, and the precise binding and delivery capabilities of antibodies. Leveraging the robust TORPEDO platform in tandem with Merck’s expertise in antibody-drug conjugation, the collaboration aims to engineer groundbreaking medicines capable of transformative impacts on patients’ lives.
In adherence to the agreement’s stipulations, C4T is set to receive a $10 million upfront payment. The collaborative efforts will initially be directed towards developing DACs targeting an undisclosed oncology target exclusive to the partnership. For DACs associated with this initial target, C4T stands to receive milestone payments amounting to approximately $600 million, alongside tiered royalties on future sales.
Additionally, the agreement grants Merck the option to extend the collaboration to encompass three additional exclusive targets, potentially resulting in option exercise payments, as well as subsequent milestones and royalties. If Merck chooses to exercise all available options, C4T stands to gain potential payments totaling up to approximately $2.5 billion throughout the entire collaboration.
This collaboration represents a fusion of Merck’s substantial expertise in biological chemistry with C4 Therapeutics’ pioneering protein degradation technology, fostering the exploration of novel avenues to advance the realm of targeted medicine.
