Adagene and Third Arc Bio announce licensing agreement for CD3 T cell engagers using Adagene's SAFEbody technology, with significant financial opportunities.
Quiver AI Summary
Adagene Inc. and Third Arc Bio, Inc. have announced a licensing agreement allowing Third Arc Bio to use Adagene's SAFEbody technology to develop masked CD3 T cell engagers targeting unique tumor-associated antigens. As part of the deal, Third Arc Bio will gain the rights to research, develop, and commercialize two candidate molecules globally, while Adagene will receive an upfront payment of $5 million and may earn up to $840 million in milestone payments, as well as royalties on sales. Adagene retains a no-cost option to develop these candidates in several Asia-Pacific regions. Both companies expressed enthusiasm over the collaboration, highlighting the innovative potential of the SAFEbody technology in enhancing therapeutic safety and efficacy.
Potential Positives
- Adagene has secured a licensing agreement with Third Arc Bio, which includes an upfront payment of $5 million and potential milestone payments of up to $840 million, indicating strong financial prospects.
- The partnership allows Third Arc Bio to utilize Adagene’s SAFEbody technology, expanding the application of Adagene's innovative technology in developing T cell engagers, which may enhance its reputation and visibility in the biotech sector.
- Adagene retains a no-cost option to develop and commercialize the candidate molecules in Greater China, Singapore, and South Korea, opening additional revenue streams in key markets.
Potential Negatives
- Adagene is licensing its SAFEbody technology to Third Arc Bio, indicating that they are not independently advancing these candidate molecules, which could reflect limitations in their current pipeline or resource allocation.
- The announcement does not specify any immediate plans or timelines for Adagene's own development of these molecules, potentially raising concerns about the company’s future growth and strategic direction.
FAQ
What is the licensing agreement between Adagene and Third Arc Bio?
Adagene has licensed its SAFEbody technology to Third Arc Bio for developing CD3 T cell engagers targeting unique tumor-associated antigens.
What financial terms are included in the agreement?
The agreement includes a $5 million upfront payment to Adagene, with up to $840 million in potential milestones and royalties on sales.
What is the SAFEbody technology?
SAFEbody technology is designed to activate antibodies exclusively in the tumor microenvironment, enhancing safety and efficacy while minimizing toxicity.
What are the objectives of Third Arc Bio's drug development?
Third Arc Bio aims to advance innovative molecules targeting T cell engagement to improve cancer treatment outcomes through novel therapeutic approaches.
How does the partnership benefit both companies?
This collaboration allows Third Arc Bio to enhance its portfolio while Adagene expands the application of its SAFEbody technology in various therapies.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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$ADAG Analyst Ratings
Wall Street analysts have issued reports on $ADAG in the last several months. We have seen 2 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
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$ADAG Price Targets
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Full Release
SAN DIEGO and SUZHOU, China and SPRING HOUSE, Pa., Nov. 13, 2025 (GLOBE NEWSWIRE) -- Adagene Inc. (“Adagene”) (Nasdaq: ADAG) and Third Arc Bio, Inc. (“Third Arc Bio”), today announced a licensing agreement under which Third Arc Bio will utilize Adagene’s SAFEbody technology platform to generate masked CD3 T cell engagers against unique tumor associated antigens. Under the terms of the agreement, Third Arc Bio will receive rights to research, develop and commercialize two candidate molecules worldwide. Adagene will receive an upfront payment of $5 million and is eligible to receive development and commercial-based milestones of up to $840 million (if all milestones and conditions are achieved) as well as royalties on end-user sales. In addition, Adagene has a no-cost option to develop and commercialize these candidate molecules in Greater China, Singapore and South Korea.
Peter Luo, Ph.D., Chief Executive Officer of Adagene said, “Our SAFEbody technology allows activation of an antibody when it reaches the tumor microenvironment. The resulting wider therapeutic index from improved safety allows for higher dosing and potentially better efficacy, as seen from the data we continue to generate with muzastotug. We’re thrilled that Third Arc Bio will be utilizing our SAFEbody technology for a portion of their exciting pipeline programs.”
“Our agreement with Adagene will allow Third Arc Bio to advance highly innovative molecules with a superior therapeutic index and help build on our growing portfolio of novel CD3- and CD28-targeting T cell engagers,” said Peter Lebowitz, M.D., Ph.D., Chief Executive Officer of Third Arc Bio. “Adagene’s SAFEbody® technology expands the reach of our ArcStim Platform to additional novel targets.”
About Adagene
Adagene Inc. (Nasdaq: ADAG) is a platform-driven, clinical-stage biotechnology company committed to transforming the discovery and development of novel antibody-based cancer immunotherapies. Adagene combines computational biology and artificial intelligence to design novel antibodies that address globally unmet patient needs. The company has forged strategic collaborations with reputable global partners that leverage its SAFEbody precision masking technology in multiple approaches at the vanguard of science.
Powered by its proprietary Dynamic Precision Library (DPL) platform, composed of NEObody™, SAFEbody, and POWERbody™ technologies, Adagene’s highly differentiated pipeline features novel immunotherapy programs. The company’s SAFEbody technology is designed to address safety and tolerability challenges associated with many antibody therapeutics by using precision masking technology to shield the binding domain of the biologic therapy. Through activation in the tumor microenvironment, this allows for tumor-specific targeting of antibodies, while minimizing on-target off-tumor toxicity in healthy tissues.
Adagene’s lead clinical program, ADG126 (muzastotug), is a masked, anti-CTLA-4 SAFEbody that targets a unique epitope of CTLA-4 in regulatory T cells (Tregs) in the tumor microenvironment. Muzastotug is currently in Phase 1b/2 and Phase 2 clinical studies in combination with anti-PD-1 therapy, particularly focused on microsatellite stable (MSS) colorectal cancer (CRC). Validated by ongoing clinical research, the SAFEbody platform can be applied to a wide variety of antibody-based therapeutic modalities, including Fc empowered antibodies, antibody-drug conjugates, and bi/multispecific T cell engagers.
For more information, please visit:
https://investor.adagene.com
.
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SAFEbody is a registered trademark in the United States, China, Australia, Japan, Singapore, and the European Union.
About Third Arc Bio
Third Arc Bio is a clinical stage biotech company developing multifunctional antibodies that generate immune synapses to precisely activate or inhibit T cells. The lead program ARC101, is a bispecific T cell engager currently being evaluated in a Phase 1 trial for cancer patients with solid tumors expressing CLDN6. The company’s drug development engine delivers superior biologics optimized to create best-in-class T cell engagement by leveraging novel technologies that power a pipeline of high value therapeutics. The Third Arc Bio platforms include a solid tumor ARCStim Platform and an immunology & inflammation (I&I) ARCTag Platform that offers precision immune regulation to achieve superior efficacy and safety. To learn more, visit
www.thirdarcbio.com
.
About ARC101
ARC101 is a potential best-in-class T cell engager that targets solid tumors expressing CLDN6. ARC101 exhibits high specificity with no off-target binding, avoids other Claudin family proteins, and has potent cytotoxicity, a long half-life and optimal biophysical properties. ARC101 is currently in Phase 1 studies
NCT06672185
, to assess its safety, tolerability, pharmacokinetics and antitumor activity in patients with advanced cancer.
Adagene Investor Contacts:
Raymond Tam
[email protected]
Corey Davis, Ph.D.
LifeSci Advisors LLC
212-915-2577
[email protected]
Adagene Media Contact:
Lindsay Rocco
Elixir Health PR
862-596-1304
[email protected]
Third Arc Bio Contacts:
Peg Rusconi, Deerfield Group
[email protected]
Amanda Jonhson, Deerfield Group
[email protected]
