08:59 AM EDT, 06/14/2024 (MT Newswires) -- Takeda Pharmaceutical ( TAK ) said Friday it signed an option agreement with Ascentage Pharma for an exclusive license to olverembatinib, a potential treatment for chronic myeloid leukemia and other blood cancers.

If exercised, the option would allow Takeda to globally license, develop, and commercialize the tyrosine kinase inhibitor outside of mainland China, Hong Kong, Macau, Taiwan, and Russia.

The orally administered drug is already approved and marketed in China for the treatment of adult patients with several types of chronic myeloid leukemia resistant to other tyrosine kinase inhibitors.

As part of the agreement, Ascentage Pharma will remain responsible for the clinical development of olverembatinib before the potential exercising of Takeda's license, Takeda said. Upon exercise of the option, Ascentage Pharma will receive a payment of $100 million and be eligible for other fees and potential milestone and royalty payments. In addition, Takeda said it will make a minority equity investment in Ascentage Pharma.

Price: 13.11, Change: +0.03, Percent Change: +0.23