Daiichi Sankyo Co., Ltd. has entered into a global development and commercialization agreement with AstraZeneca for Daiichi’s DS-1062, a TROP2 directed DXd antibody drug conjugate (ADC), currently in Phase I development for non-small cell lung cancer (NSCLC) and triple negative breast cancer (TNBC).

The companies will jointly develop and commercialize DS-1062 worldwide, except in Japan where Daiichi will maintain exclusive rights. Daiichi Sankyo will manufacture and supply DS-1062.

This is the second global ADC collaboration between the two companies following a similar agreement in March 2019 for Daiichi’s ENHERTU, a HER2 directed DXd ADC.

AstraZeneca will pay $1 billion upfront, of which $350 million is due upon execution, $325 million after 12 months and $325 million after 24 months. Payments of up to $5 billion include $1 billion for regulatory milestones and $4 billion for sales-related milestones. Total payments under the agreement have the potential to reach up to $6 billion.

The companies will share development and commercialization costs as well as profits from DS-1062 worldwide, except for Japan. Daiichi Sankyo is expected to book sales in U.S., certain countries in Europe, and certain other markets where Daiichi Sankyo has affiliates. AstraZeneca is expected to book sales in other markets worldwide, including China, Australia, Canada and Russia.