Conduit Pharma Signs Exclusive License Deal with AstraZeneca for Multiple Assets

On August 08, 2024, Conduit Pharmaceuticals Inc. (Nasdaq: CDT) announced a significant agreement with AstraZeneca. This agreement grants Conduit exclusive rights to develop three key compounds: AZD1656 and AZD5658, both HK-4 glucokinase activators, and AZD5904, a myeloperoxidase inhibitor. Notably, AstraZeneca had already advanced AZD1656 and AZD5904 through Phase 1 clinical trials.

Conduit's primary focus under this agreement will be to initiate Phase II clinical trials for AZD1656 and AZD5658 in 2024, targeting treatments for autoimmune disorders, which impact approximately 10% of the population. Alongside this, Conduit has secured exclusive development rights for AZD5904 for Idiopathic Male Infertility.

The terms of the License Agreement stipulate that AstraZeneca will receive shares of common stock in Conduit and a portion of any sublicense revenues, including upfront payments, milestones, and royalties from future partners. Additionally, AstraZeneca will provide Conduit with pre-clinical and clinical data and supply quantities of the compounds from its inventory. The agreement also includes the transfer of essential know-how related to the three compounds from AstraZeneca to Conduit. Furthermore, AstraZeneca retains a right of first negotiation to develop, manufacture, and commercialize the licensed compounds if Conduit decides to assign, license, or grant such rights to a third party.

Conduit plans to use the existing clinical data to expedite the development of these compounds. The company believes that this strategy will accelerate bringing new, innovative treatments to patients with significant unmet medical needs.

Dr. David Tapolczay, Chief Executive Officer of Conduit, expressed excitement about the agreement with AstraZeneca. He highlighted the potential of these assets to become vital first-in-class medicines and noted the strong rationale for initiating Phase II studies based on AstraZeneca’s clinical trial data. Dr. Tapolczay emphasized that Conduit is committed to progressing these assets towards commercialization.

Conduit Pharmaceuticals operates on a distinctive business model, differing from the conventional approach of guiding assets through the entire commercial lifecycle. Instead, Conduit acquires assets that have already undergone pre-clinical and clinical testing and seeks to fast-track them through Phase II trials. Upon successful trials, the company aims to secure exits through third-party licensing opportunities.

About Conduit Pharmaceuticals:
Conduit Pharmaceuticals is a clinical-stage, multi-asset, life science company with a disease-agnostic approach to compound development. The company focuses on acquiring and funding the development of Phase II-ready assets and then seeks exits through third-party licensing deals post-successful clinical trials. Conduit's model is based on efficiency and is led by experienced pharmaceutical executives, including Dr. David Tapolczay and Dr. Freda Lewis-Hall. This innovative strategy represents a shift from the traditional pharmaceutical and biotech business models that typically involve taking assets through regulatory approval stages.

Conduit's recent agreement with AstraZeneca is a testament to its commitment to developing breakthrough treatments and its innovative approach within the pharmaceutical industry. By leveraging existing clinical data and fast-tracking the development of promising compounds, Conduit aims to meet substantial unmet medical needs and deliver new therapeutic options to patients.