Dianthus to license autoimmune disease candidate in a deal worth up $1B

[Gratitude Concept With Heart Symbol]
Eoneren

Dianthus Therapeutics (NASDAQ:DNTH [https://seekingalpha.com/symbol/DNTH]) announced a licensing deal worth up to $1B with Nanjing Leads Biolabs on Thursday to obtain exclusive rights to an autoimmune disease therapy developed by the Chinese biotech.

Based on preclinical data, Dianthus (NASDAQ:DNTH [https://seekingalpha.com/symbol/DNTH]) highlighted how the drug candidate, DNTH212, could work against serious autoimmune diseases and underscored its potential as a first-line biologic given its less frequent dosing and subcutaneous self-administration.

Per the deal terms, the company will receive exclusive global rights to develop and commercialize DNTH212 outside China. In return, it will pay Leads Biolabs up to $30M in upfront and near-term milestones, in addition to $8M pending the start of a Phase 1 trial.

The Hong Kong-based biotech is also eligible to receive $962M in total development as well as regulatory and sales-based milestones in addition to tiered royalties based on the drug’s sales outside China.

In conjunction with the announcement, Dianthus (NASDAQ:DNTH [https://seekingalpha.com/symbol/DNTH]), citing preliminary unaudited data, projected that its cash balance as of Sept. 30 stands at roughly $525M, excluding $30M paid to Leads Biolabs for upfront and near-term milestones. The company continues to expect its cash runway to extend into 2028. [https://seekingalpha.com/pr/20268304-dianthus-therapeutics-announces-exclusive-license-agreement-with-leads-biolabs-for-dnth212-a]

MORE ON DIANTHUS THERAPEUTICS

* Dianthus Therapeutics, Inc. (DNTH) Phase 2 MaGic Data Investor Webcast Transcript [https://seekingalpha.com/article/4820799-dianthus-therapeutics-inc-dnth-phase-2-magic-data-investor-webcast-transcript]
* Dianthus Therapeutics, Inc. (DNTH) Phase 2 MaGic Data - Slideshow [https://seekingalpha.com/article/4820747-dianthus-therapeutics-inc-dnth-special-call-slideshow]
* Dianthus Therapeutics prices upsized $251M securities offering [https://seekingalpha.com/news/4493589-dianthus-therapeutics-prices-upsized-251m-securities-offering]
* Seeking Alpha’s Quant Rating on Dianthus Therapeutics [https://seekingalpha.com/symbol/DNTH/ratings/quant-ratings]
* Historical earnings data for Dianthus Therapeutics [https://seekingalpha.com/symbol/DNTH/earnings]