June 15 Quick Takes: Astellas adds protein degraders in Cullgen deal

Japanese pharma Astellas Pharma Inc. (Tokyo:4503) is making its first move into protein degradation via a deal with Cullgen Inc. under which the partners will combine Cullgen’s uSMITE protein degradation platform of novel E3 ligands with Astellas’ drug discovery capabilities to jointly discover development candidates, with Astellas receiving an exclusive option to license any resulting programs. San Diego-based Cullgen will receive $35 million up front and $85 million upon exercise of the option for the first program, with their own option to co-promote in the U.S. In total, Cullgen is eligible for up to $1.9 billion if all options and milestones are achieved. The partners said the lead program is a cell cycle protein degrader in development for breast cancer and other solid tumors.

Coming off May’s total of $2.2 billion in follow-ons, representing the strongest month yet for the financings among biotechs this year, Zentalis Pharmaceuticals Inc. (NASDAQ:ZNTL) and Editas Medicine Inc. (NASDAQ:EDIT) each extended their runways by pricing follow-on offerings. Zentalis raised $250 million through the sale of just over 11 million shares at $22.66, while Editas sold 12.5 million shares at $10 to raise $125 million...