Key Takeaways:
XTALPI (02228.HK) received a second payment of $19 million from partner DoveTree as a pan-cancer drug candidate entered IND-enabling studies, the AI-driven drug discovery company said.
"The collaboration with DoveTree has progressed smoothly," XTALPI said in a filing. One high-value pan-cancer asset demonstrated clear target engagement effects and an excellent selectivity window in preliminary biological activity validation, the company said.
The $19 million payment was the second tranche stipulated under the definitive agreement between the two companies. XTALPI and DoveTree will deepen cooperation on agreed hard-to-drug targets, including molecular glue programs, to accelerate clinical translation of candidate drugs.
XTALPI shares rose 4.6% on the Hong Kong Stock Exchange, with short selling volume reaching $73.1 million, representing 20% of total turnover. Under the deal terms, XTALPI is eligible for up to $5.89 billion in potential regulatory and commercial milestone payments, plus single-digit percentage royalties based on annual net product sales.
The milestone payment validates XTALPI's AI-driven drug discovery platform and provides near-term cash to fund its pipeline. Investors will watch for the company's next development milestone as the pan-cancer candidate progresses toward clinical trials.
This article is for informational purposes only and does not constitute investment advice.
