aTyr Pharma (LIFE) Stock Climbs On Collaboration

aYtr Pharma LIFE Stock News

aTyr Pharma Inc (NASDAQ: LIFE) is flying for the top in the market this morning, and for good reason. The company announced a new collaboration, sending the stock rising by more than 50%. Here’s what’s going on:

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LIFE Stock Pops On Collaboration News

aTyr Pharma issued a press release early this morning announcing that it has entered into a new collaboration and license agreement. The agreement was signed with Kyorin Pharmaceutical Co., Ltd., a wholly owned subsidiary of Kyorin Holdings, Inc.

Under the new collaboration and license agreement, the two companies will work to develop and commercialize ATYR1923 in Japan. ATYR1923 is the lead candidate at LIFE and is currently being developed as an option for treating interstitial lung diseases, or ILDs.

As part of the agreement, LIFE will receive an upfront payment of $8 million. The company is also eligible to receive up to $167 million in development, regulatory and sales milestones. Finally, the two parties have agreed to a tiered royalty plan based on net sales in Japan.

In exchange for the funding, Kyorin will receive the exclusive right to develop and commercialize the treatment in Japan for ILDs. In a statement, Dr. Sanjay Shukla, President and CEO at LIFE, had the following to offer:

We are very pleased to enter into this collaboration with Kyorin, a leading respiratory focused pharmaceutical company in Japan, to advance ATYR1923 in an important market. As in the U.S., ILDs represent an area of significant unmet medical need in Japan, and Kyorin’s development and commercial capabilities will enhance our ability to improve the lives of patients with these serious conditions. We believe this collaboration further validates ATYR1923 and potentially accelerates development in other ILDs.

The above statement was followed up by Yutaka Ogihara, President and CEO at Kyorin Holdings. Here’s what he had to say:

We are excited to enter into this agreement with aTyr and bring this new, potentially first-in-class drug to Japanese ILD patients.

Responsibilities

In the release, aYtr Pharma said that through the development and commercialization process, it will be charged with supplying all drug product for Japan. The company will also support development activities as the global development leader for ATYR 1923.

Kyorin will be responsible for funding all research, development, regulatory, marketing and commercialization activities in Japan.

All in all, this is a very big agreement for LIFE. At the end of the day, it will take the financial obligation associated with the development of this drug in Japan off of the table, provide much needed funding to make it through catalysts, and provide a long-term revenue stream should the drug prove to be safe and effective. All in all, this agreement is a win/win for everyone involved.

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