Today, Surface Oncology (Nasdaq: SURF) surged 10.46% to 9.4 in the after-hours as it officially announced an agreement with GSK to develop and commercialize Surface Oncology’sOncology’s preclinical program, SRF813, an antibody that aims to inhibit PVRIG, an inhibitory protein expressed on natural killer cells (NK cells) and T cells.
As part of the agreement, GSK will pay an upfront payment of $85 million. Surface Oncology can expect to receive up to an additional $730 million in further milestone payments, as well as receive tiered royalties on global net sales.
“We are extremely pleased to be entering into this agreement with GSK given the strong strategic fit for SRF813 within GSK’sGSK’s oncology portfolio, including the possibility of pursuing compelling novel clinical combinations. We believe that the economics of the transaction support our efforts further to advance our wholly-owned clinical programs, SRF617 and SRF388, while also progressing SRF114, our CCR8 targeted program,” said Jeff Goater, CEO at Surface Oncology.
SRF813, which is a natural killer cell approach, complements our existing programs focusing on T-cell/adaptive immunity,” said Dr. Axel Hoos, GSK’sGSK’s senior vice president and head of oncology R&D.
After the GSK license agreement, Surface Oncology expects its current cash and cash equivalents,
to be sufficient for the company company’s operations through the year 2023.