Monday, Takeda Pharmaceutical Company Limited ( TAK ) and AC Immune SA ( ACIU ) announced an exclusive, worldwide option and license agreement for AC Immune’s active immunotherapies targeting toxic forms of amyloid beta (Abeta), including ACI-24.060 for Alzheimer’s disease.

ACI-24.060 is an anti-Abeta active immunotherapy candidate designed to induce an antibody response against the toxic forms of Abeta believed to drive plaque formation and Alzheimer’s disease progression. 

By inducing plaque clearance and efficiently inhibiting plaque formation in the brain, ACI-24.060 has the potential to delay or slow Alzheimer’s disease progression. 

ACI-24.060 is being investigated in the ongoing ABATE Phase 1b/2 trial.

AC Immune ( ACIU ) will be responsible for completing the ABATE trial. Following the option exercise, Takeda would conduct and fund all further clinical development and be responsible for all global regulatory activities and worldwide commercialization.

Under the terms of the agreement, AC Immune ( ACIU ) will receive an upfront payment of $100 million and be eligible to receive an option exercise fee and additional potential development, commercial, and sales-based milestones of up to approximately $2.1 billion if all related milestones are achieved over the course of the agreement. 

Upon commercialization, AC Immune ( ACIU ) will be entitled to receive tiered double-digit royalties on worldwide net sales.

AC Immune ( ACIU ) says a total cash balance of CHF 104.8 million at the end of the first quarter plus $100 million upfront from Takeda and the anticipated ACI-35.030-related CHF 25 million milestone is expected to provide a cash runway for three years.

Price Action: ACIU shares are up 33.8% at $3.09 at last check Monday.