Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) and Aristea Therapeutics, Inc. today announced a strategic collaboration to advance the clinical development of RIST4721, an oral CXCR2 antagonist being developed by Aristea for the treatment of palmoplantar pustulosis (PPP) and other neutrophil-mediated diseases.
Under the terms of the agreement, Arena will provide a $60 million upfront payment to Aristea and a $10 million equity investment in Aristeas Series B financing. In return, Aristea has granted Arena an exclusive option to acquire Aristea, including rights to all CXCR2 programs, upon completion of the Phase 2b study of RIST4721 in PPP. The agreement also provides a framework during the option period for the companies to jointly explore the development of additional neutrophil-mediated diseases, including hidradenitis suppurativa (HS) and inflammatory bowel disease (IBD), potentially generating multiple data readouts during the option period.
Separately, Aristea announced today the closing of a $63 million Series B financing led by Fidelity Management & Research Company, LLC, with participation by existing investor Novo Holdings A/S and new investors Arena Pharmaceuticals and funds managed by Tekla Capital Management, LLC.
The collaboration and option agreement with Aristea provides Arena with an opportunity to bolster our early- to mid-stage immunology pipeline in two of our core therapeutic areas, dermatology and gastroenterology, said Amit D. Munshi, President and Chief Executive Officer of Arena Pharmaceuticals. We look forward to working closely with the Aristea team with the goal of bringing a novel therapy to patients with neutrophilic diseases.
This collaboration reflects Arenas commitment to Aristeas highly innovative science, the significant progress we have made in exploring best-in-class therapeutics for serious and rare inflammatory diseases, and the value of our clinical pipeline, said James M. Mackay, Ph.D., Chief Executive Officer of Aristea Therapeutics. There are currently no approved therapies for PPP in U.S. or EU. Our lead candidate product, RIST4721, has completed a Phase 2a study and it is on track to initiate Phase 2b. We look forward to our productive collaboration with Arena and to accelerating the development of RIST4721 to bring this therapy to patients. 2021 Global Data Point.