Horizon Therapeutics Inks Option Agreement For Atopic Dermatitis Candidate

Q32 Bio and Horizon Therapeutics plc (NASDAQ:HZNP) entered into a collaboration and option agreement to develop ADX-914 for autoimmune diseases.
ADX-914 is a fully human anti-IL-7Rα antibody that re-regulates adaptive immune function by blocking signaling mediated by both IL-7 and TSLP.
Q32 has recently completed a biomarker-enabled Phase 1 study characterizing pharmacokinetics, pharmacodynamics, and safety of ADX-914 that demonstrated pharmacological effect on T cells in healthy volunteers.
Q32 expects to initiate a Phase 2 trial in atopic dermatitis later this year and is planning to initiate a Phase 2 trial in a second autoimmune disease next year.
Horizon will fund development through the completion of the two Phase 2 trials of ADX-914, with Q32 being operationally responsible for the conduct of all program-related activities.
Horizon will receive an option to acquire the ADX-914 program, exercisable through the completion of the Phase 2 trials.
During the option period, Q32 will receive $55 million, of which Horizon expects to recognize as R&D expenses approximately $32.5 million in Q3 of 2022 and the remainder in 2023.
If Horizon exercises the option, Q32 may be eligible to receive up to an additional $645 million in milestone payments.
Price Action: HZNP shares are down 2.13% at $66.03 during the market session on the last check Monday.