The Agreement Will Support the Development of a Potential New Treatment Option for Multiple Myeloma

Austin, TX (Press Release) – Molecular Templates, Inc. (Nasdaq:MTEM) today announced an agree­ment with Takeda Pharma­ceu­tical Company Limited (Takeda) for the joint devel­op­ment of CD38-targeted engi­neered toxin bodies (ETBs) for the treat­ment of patients with diseases such as multiple myeloma. The lead devel­op­ment can­di­date is a CD38-targeted ETB that resulted from a pre­vi­ous discovery col­lab­o­ration be­tween the two com­pa­nies.

The parties devel­oped pre­clin­i­cal stage ETBs targeting CD38 under the prior discovery col­lab­o­ration. Takeda and Molecular Templates will further develop the ETBs for the treat­ment of multiple myeloma under this new license, devel­op­ment and com­mer­cial­iza­tion agree­ment.

“This col­lab­o­ration builds on Takeda’s deep history and commitment to the study of blood cancers, in­­clud­ing multiple myeloma,” said Philip Rowlands, Ph.D., Head, Oncology Therapeutic Area Unit at Takeda. “Throughout our research col­lab­o­ration with Molecular Templates, we have seen the promise of its ETB plat­form for the discovery and devel­op­ment of new ther­a­pies. As we expand our rela­tion­ship and con­tinue to explore next-generation modalities, our hope is to bring forth new and im­por­tant treat­ment options for patients.”

Under the terms of the agree­ment, Takeda will make an up­front pay­ment of $30 million and Molecular Templates is eli­gible to receive devel­op­ment, regu­la­tory and commercial mile­stone pay­ments of up to $632.5 million if Molecular Templates exercises its co-development option or $337.5 million if Molecular Templates does not exercise or opts out of its co-development option. Takeda has also agreed to pay royalties on sales of the commercial prod­uct devel­oped through the col­lab­o­ration. Molecular Templates and Takeda will share equally in the devel­op­ment costs.

“We have worked closely with Takeda’s scientific team since October 2016 to develop CD38-targeted ETBs with sub­stan­tial im­prove­ments over our own internal pro­gram, MT-4019,” said Eric Poma, Ph.D., Molecular Templates’ Chief Executive and Scientific Officer. “Takeda’s expertise in multiple myeloma and strong anti­body capabilities allowed us to develop CD38-targeted ETBs that, of the ones tested to date, are the most potent ETBs we have created with our plat­form. We look for­ward to moving this pro­gram into the clinic.”

Multiple myeloma cells widely express the CD38 protein, making it an in­creas­ingly im­por­tant target in the devel­op­ment of thera­peutics for multiple myeloma. CD38-targeted ETBs recog­nize the protein and deliver a modified bacterial toxin that enters the myeloma cells and destroys them through the enzy­matic and irreversible destruction of ribosomes. Unlike other CD38-targeted ther­a­pies, ETBs are not reliant on the body’s own immune sys­tem for effectiveness, offering the poten­tial of broader and deeper responses.

About Molecular Templates

Molecular Templates is focused on the discovery, devel­op­ment and com­mer­cial­iza­tion of next-generation immunotoxins called Engineered Toxin Bodies (ETBs) for the treat­ment of cancers and other serious diseases. For addi­tional in­­for­ma­tion, please visit Molecular Templates’ website at www.mtem.com.

Forward-Looking Statements

This press release con­tains for­ward-looking state­ments for pur­poses of the Private Se­cu­ri­ties Liti­ga­tion Reform Act of 1995 (the “Act”). Molecular Templates disclaims any intent or obli­ga­tion to update these for­ward-looking state­ments, and claims the protection of the Act’s Safe Harbor for for­ward-looking state­ments. All state­ments, other than state­ments of historical facts, in­cluded in this press release re­gard­ing strategy, future results, future financial position, future revenue, pros­pect­s, plans and objectives of Molecular Templates are for­ward-looking state­ments. In addi­tion, when or if used in this press release, the words “may,” “could,” “should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “predict” and similar ex­pres­sions and their variants, as they relate to Molecular Templates may identify for­ward-looking state­ments. Examples of such state­ments in­clude, but are not limited to, state­ments relating to the devel­op­ment of the poten­tial for CD-38 targeting ETBs under the agree­ment; the ex­pec­ted timing and the poten­tial for pay­ments under the agree­ment; and the Company’s belief that its pro­pri­e­tary biologic drug plat­form tech­nology, or ETBs, provides for a dif­fer­en­ti­ated mech­a­nism of action that may address some of the limitations asso­ci­ated with cur­rently avail­able cancer thera­peutics.

Forward-looking state­ments are not guar­an­tees of future per­for­mance and involve risks and un­cer­tain­ties. Actual events or results may differ ma­teri­ally from those discussed in the for­ward-looking state­ments as a result of various factors in­­clud­ing, but not limited to, the un­cer­tain­ties in­her­ent in the pre­clin­i­cal and clin­i­cal devel­op­ment process; risks asso­ci­ated with the joint devel­op­ment of CD38-targeted ETBs; whether the Company’s cash resources will be sufficient to fund its continuing operations for the periods and/or trials antic­i­pated; the ability of the Company to protect its intellectual property rights; and legislative, regu­la­tory, political and economic devel­op­ments, as well as those risks identified under the heading “Risk Factors” in the Company’s filings with the SEC. Any for­ward-looking state­ments con­tained in this press release speak only as of the date hereof, and the Company specif­i­cally disclaims any obli­ga­tion to update any for­ward-looking state­ment, whether because of new in­­for­ma­tion, future events or other­wise.

Source: Molecular Templates, Inc.