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Lytix Biopharma enters milestone agreement

Lytix Biopharma

Lytix Biopharma licenses its lead candidate LTX-315, an oncolytic peptide based immunotherapy, to Verrica Pharmaceuticals, for the treatment of dermatologic oncology indications.

“With aggregate payments of more than $110M”

Lytix is entitled to receive an up-front payment, contingent regulatory milestones based on achievement of specified development goals, and sales milestones, with aggregate payments of more than $110M, as well as tiered royalty payments in the double-digit teens once Verrica successfully commercializes LTX-315 in dermatologic oncology indications.

“We are pleased to enter into this collaboration with Verrica, which has significant expertise within the field of dermatology,” says Øystein Rekdal, Lytix’s CEO. “Our lead drug, LTX-315, has shown very promising efficacy and safety signals in cancer patients during Phase I/II studies and we are excited that this partnership with Verrica will expand the applications for LTX-315”

LTX-315

LTX-315 is a first-in-class oncolytic peptide that is injected directly into a tumor to induce immunogenic cell death. The compound has demonstrated positive tumor-specific immune cell responses in multi-indication Phase I/II oncology trials.

Unique mechanism of action

Verrica Pharmaceuticals is a dermatology therapeutics company developing medications for skin diseases requiring medical interventions. The company intends to focus initially on basal cell and squamous cell carcinomas as the lead indications for development of LTX-315.

“This is an important milestone in the broadening of Verrica’s strategy to bring breakthrough treatments for skin diseases to patients and physicians, as dermatologic cancers are a highly prevalent and potentially life-threatening subset of the oncology space,” says Dr. Gary Goldenberg, Verrica’s Chief Medical Officer. “LTX-315’s unique mechanism of action is potentially a significant improvement over invasive surgery.”

Terms of the agreement

Under the terms of the agreement, Lytix will be entitled to receive an upfront payment, contingent regulatory milestones based on achievement of specified development goals, and sales milestones, with aggregate payments of up to $113.5 million, of which the upfront and the first regulatory milestone payments totals USD 2.5 million, in addition to tiered royalties based on worldwide annual sales. The agreed upon royalty rates start in the low double digits and increase to the mid-teens based on net sales achieved.

Verrica is solely responsible for the development, regulatory filings, and commercialization of LTX-315 in dermatology, while Lytix is responsible for manufacturing the active pharmaceutical ingredient. The license includes worldwide rights for Verrica to develop and commercialize LTX-315 for all malignant and pre-malignant dermatological indications, except for metastatic melanoma and metastatic Merkel cell carcinoma.

Photo of Gert W. Munthe, Chairman of the Board Lytix Biopharma, and Øystein Rekdal, CEO, Lytix Biopharma