G1 Therapeutics signs oncology drug deal with Pepper Bio

RESEARCH TRIANGLE PARK, N.C. – G1 Therapeutics, Inc. (NASDAQ: G1), a commercial-stage oncology company, has entered into a license agreement with Pepper Bio to develop and commercialize lerociclib, a drug that targets multiple drug candidates for various cancer types). The agreement, which excludes the Asia-Pacific region, gives Pepper Bio rights to lerociclib for all indications except certain radiation protection uses.

Lerociclib is a cyclin-dependent kinase inhibitor that has shown promise in clinical studies, particularly in hormone receptor-positive, HER2-negative metastatic breast cancer. The drug is also preparing to enter Phase 2 clinical trials in hepatocellular carcinoma, the third leading cause of cancer-related death.

Pepper Bio's COMPASS platform integrates multiple layers of biological data to help identify CDK4 and CDK6 as targets for liver cancer treatment. Preclinical models show superior efficacy of lerociclib compared with standard treatments.

Under the terms of the deal, G1 Therapeutics will receive an upfront payment of millions of dollars over 12 months and earn up to $135 million in revenue based on development and commercial milestones across three indications. In addition, Pepper Bio will pay G1 double-digit royalties based on annual net sales of lerociclib.

The agreement follows Pepper Bio's successful seed funding round and marks the company's first licensed therapeutic. It aligns with G1's partnership strategy to gain global access to its oncology therapies. This collaboration aims to effectively advance the development of lerociclib through clinical trials and regulatory approval.

G1 Therapeutics retains rights to lerociclib in the Asia-Pacific region through a previous license granted to Jiahe Biopharmaceuticals. The drug is currently under review in China for the treatment of hormone receptor-positive, HER2-negative breast cancer.

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Both companies expressed their commitment to innovation and the potential of lerociclib to address unmet needs in oncology. This news is based on a press release.

Investment Professional Insights

G1 Therapeutics, Inc. (NASDAQ: GTHX) recently demonstrated strategic moves in oncology, including a licensing agreement with Pepper Bio. As investors consider GTHX's potential, several financial metrics and InvestingPro Tips can provide investors with a deeper understanding of the company's current financial health and market performance.

One note of note from InvestingPro is GTHX's impressive gross margin, which stood at 91.28% for the trailing twelve months to Q4 2023. Very efficient, this is a positive sign for investors looking for companies with strong operating results.

Additionally, GTHX holds more cash than debt on its balance sheet, giving them the financial flexibility to enter new licensing agreements and continue funding their clinical trials. This may be particularly reassuring for investors considering the potential risks associated with the biotech industry.

From the perspective of market performance, GTHX's stock price has fluctuated greatly. In the past 6 months as of the date provided, its total price return was 181.34%, showing strong investor interest and an active market. This level of volatility highlights the importance of timely, informed investment decisions in the biotechnology sector.

InvestingPro Data also shows that GTHX has a market capitalization of approximately $197.19 million. Although the company has not made a profit in the past 12 months, with a price-to-earnings ratio (adjusted) of -4.11, revenue growth has been strong, reaching 60.84% ​​over the same period.

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For those looking for more in-depth analysis, additional InvestingPro tips can be found at Investing.com/pro/GTHX, including insights on sales decline expectations and price fluctuations.Use coupon code PRONEWS24 Subscribe to Pro and Pro+ annually or every two years to receive an additional 10% discount, unlocking valuable information that can guide investment decisions.

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