Shares of C4 Therapeutics (NASDAQ:CCCC) rose 10% after the company disclosed an expanded collaboration with Roche (SIX:RO, ROP; OTCQX:RHHBY) aimed at developing degrader-antibody conjugates for oncology targets.
Under the terms of the arrangement, C4 will receive $20 million in upfront cash and stands to earn in excess of $1 billion in total discovery, development and commercial milestone payments, together with future royalties on sales. The collaboration initially centers on two oncology targets, with Roche holding an option to add a third target to the work plan.
C4 will apply its TORPEDO platform to design candidate degrader payloads. Roche will be responsible for choosing and engineering the antibody component and conjugating it to the degrader payload. Roche will also lead the preclinical and clinical development efforts and, if candidates progress, commercialization of any degrader-antibody conjugate products.
The agreement brings together antibody-drug conjugation and targeted protein degradation technologies to pursue cancer treatments. As structured, the deal provides C4 with near-term discovery milestone payments; an additional payment would be triggered if Roche exercises the option to pursue a third target. Beyond milestone payments, C4 is entitled to tiered royalties on any future product sales arising from the collaboration.
This expanded deal represents the third collaboration between the two companies and builds on a partnership that began in 2016. The companies will work on two exclusive programs to develop degrader-antibody conjugates against undisclosed oncology targets.
Context and next steps
- C4 will advance degrader payload design using its TORPEDO technology while Roche manages antibody selection, conjugation and downstream development and commercialization activities.
- Financial consideration in the pact includes a $20 million upfront payment to C4, more than $1 billion in potential milestone payments, and tiered royalties on sales.
- The collaboration covers two initial oncology targets exclusive to the partnership, with an option for a third target that would trigger an additional payment.
Details on the specific oncology targets under the collaboration remain undisclosed. The announcement does not provide a timeline for preclinical or clinical milestones, nor does it include further breakdowns of the potential milestone payments. The companies will proceed with the defined roles: C4 focused on degrader payload design and Roche on antibody selection, development and commercialization.