🔒 Adagene, Third Arc ink deal for masked T-cell engagers

Adagene licensed two masked CD3 T-cell engagers to Third Arc Bio in a $5M upfront deal, with potential milestones up to $840M, leveraging Adagene's SAFEbody masking technology to reduce toxicity in solid tumor therapies.

Why It Matters To Oncology

 SAFEbody technology restricts antibody activation to the tumor microenvironment, aiming to minimize off-tumor toxicity and expand dosing windows.

 Broader therapeutic index could improve efficacy and safety profiles of T-cell engagers, addressing historical challenges in the field.

The Financials

 Third Arc pays $5M upfront; Adagene eligible for up to $840M in milestones plus royalties.

 Adagene retains a no-cost option to commercialize in China, Singapore, and South Korea.

 Separately, Sanofi recently exercised its option on a third SAFEbody program, investing $25M (part of a deal valued up to $2.5B).

What They're Saying

 "The resulting wider therapeutic index from improved safety allows for higher dosing and potentially better efficacy," said Adagene CEO Peter Luo, referencing clinical data for muzastotug (ADG126).

 Third Arc CEO Peter Lebowitz said the deal will "expand the reach of our ArcStim Platform" and advance innovative CD3/CD28-targeting T-cell engagers.

What's Next

 Third Arc will advance preclinical and clinical development of the licensed candidates, integrating SAFEbody into its pipeline.

 Sanofi continues to develop masked immuno-oncology antibodies using SAFEbody, with financials supporting Adagene's operations through 2027.