Ideaya Biosciences : Shares Hit 52-Week High on Partnership With Glaxo

By Chris Wack

Ideaya Biosciences Inc. shares were up 40% at $12.50 after the company said it was in a strategic partnership with GlaxoSmithKline Plc for Synthetic Lethality, an emerging field in oncology.

The stock hit its 52-week high of $14.83 earlier in the session.

The strategic partnership includes Ideaya's Synthetic Lethality programs MAT2A, Pol Theta and Werner Helicase programs, which are projected to reach clinical trials within the next three years. Ideaya said it has solved the crystal structures for each of its MAT2A, Pol Theta and Werner Helicase programs, enabling structure-based drug design, and has demonstrated in vivo proof of concept in relevant animal models for its MAT2A and Pol Theta programs.

Ideaya said it will lead the MAT2A program through early clinical development, and be responsible for all costs of the MAT2A program prior to the GlaxoSmithKline option exercise. After that, Ideaya is responsible for 20% of global development costs.

Ideaya will receive a 50% U.S. profit share and ex-U.S. royalties for the MAT2A and Werner Helicase programs and is responsible for 20% of global development costs for licensed products being developed with GlaxoSmithKline.

Ideaya will also receive global royalties for the Pol Theta program, and GlaxoSmithKline will cover all research, development and commercialization costs. GlaxoSmithKline will be responsible for all commercialization activities and costs globally for licensed products.

Ideaya said it will receive a $100 million upfront cash payment, and $20 million equity purchase of its common stock in a direct private placement, and a potential $50 million cash option exercise fee for the MAT2A program. Ideaya also is entitled to receive potential preclinical, clinical and sales milestones.

Oppenheimer raised its price target for Ideaya Biosciences to $25 from $17, while keeping an Outperform rating on the shares.

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