Health Wildcatters graduate startup Lantern Pharma announced that it’s joining with a Denmark-based oncology company in a licensing agreement that could result in $20 million landing in the Dallas biotech company’s coffers.
Denmark’s Oncology Venture, Aps pledged $625,000 at the start; after royalties and milestone payments, Lantern Pharma could turn that into as much as $20 million. This is the first such arrangement for the company, which combines a cancer drug with data and genetic tests to target a subset of patients who are most likely to react well to it.
Oncology Venture enters into the second part of that—it has exclusive rights to a computational method that analyzes tumor cell lines and cancer biopsies. Lantern Pharma CEO Dr. Arun Asaithambi hopes the pairing will identify patients that would participate in further clinical trials.
“The project emphasizes Lantern’s commitment to the development of precision cancer drugs by employing cutting-edge companion diagnostics to identify and enroll the right patients in order to conduct successful clinical trials with patients that will actually benefit from Irofulven,” he said in a statement.
Oncology Venture will fund an initial phase 2b trial, which Asaithambi hopes will determine the effectiveness of the drug on selected patients. If successful, the Denmark company will also pay for further phase 2b trials.