Massive pharmaceutical corporations splashed out massive bucks in 2023 to amass or license antibody drug conjugates, or ADCs. The development is continuous into the brand new 12 months with Johnson & Johnson reaching a $2 billion deal to amass clinical-stage Ambrx Biopharma.
In line with deal phrases introduced Monday, J&J can pay $28 money for every Ambrx share, which is a 105% premium to the biotech’s closing inventory worth on Friday. In different biopharma deal bulletins, Merck is paying $680 million to amass Harpoon Therapeutics, a developer of focused most cancers therapies, and Novartis is shopping for autoimmune illness drug developer Calypso Biotech for $250 million.
The offers come because the annual J.P. Morgan Healthcare convention kicks off this week in San Francisco. Earlier than the convention’s begin, the funding financial institution launched its annual biopharma licensing and enterprise report, which tallied $128.8 billion in complete biopharma upfront worth throughout 112 acquisitions in 2023. ADCs are a spotlight of the dealmaking totals in 2023, amounting to $4.6 billion in upfront money and fairness final 12 months, the report states.
An ADC hyperlinks a focusing on antibody to a poisonous drug payload, typically a chemotherapy. Pairing the 2 delivers a deadly strike to most cancers cells whereas sparing wholesome cells. Lead Ambrx program ARX517 targets the protein PSMA and is in Section 1 testing for superior prostate most cancers. In November, Ambrx reported encouraging information from a dose-escalation research and mentioned it expects to have a really useful dose for Section 2 testing in early 2024.
Ambrx had reached Section 2 testing in breast cancers with ARX788, an ADC that targets the most cancers protein HER2. However in 2022, the corporate paused this program’s medical growth, citing modifications within the aggressive panorama. Enhertu, a HER2-targeting ADC from companions Daiichi Sankyo and AstraZeneca, expanded its authorized makes use of in 2022 with an FDA nod for treating breast most cancers characterised by low ranges of HER2. The remedy additionally gained approval that 12 months for treating non-small cell lung most cancers that expresses HER2.
Daiichi Sankyo is a pacesetter in ADC discovery, and its belongings are progressing by means of partnerships. The latest companion is Merck, which final fall agreed to pay $4 billion up entrance to license three Daiichi Sankyo ADCs. The largest ADC deal of 2023 was Pfizer’s $43 billion acquisition of Seagen. In different ADC dealmaking exercise, AbbVie agreed to pay $10.1 billion to amass ImmunoGen and its commercialized ovarian most cancers ADC, Elahere.
Within the fourth quarter, there have been fewer transactions however the offers that have been accomplished concerned later-stage belongings, which drove deal values larger, in keeping with J.P. Morgan. Massive pharma corporations are shifting to later-stage in-licensing offers to mitigate danger.
“ADCs are positioned as a extra confirmed know-how relative to newer game-changing modalities seen with cell and gene remedy packages—talking to the present urge for food of massive pharma for comparatively de-risked packages,” the report mentioned.
The Ambrx board of administrators has authorized the acquisition, which is predicted to shut within the first half of 2024. Right here’s a take a look at the opposite two main biopharma M&A strikes introduced Monday:
Merck Spears Most cancers Asset With Harpoon Therapeutics Acquisition
Merck’s most cancers drug lineup is anchored by Keytruda. However looming patent expiration for this most cancers immunotherapy is main the pharma big to search for different belongings to develop income. In Harpoon Therapeutics, Merck good points a clinical-stage program addressing a promising goal for stable tumors.
South San Francisco-based Harpoon researches T cell engagers, a sort of drug that prompts T cells to kill most cancers cells. Some bispecific T cell engagers are authorized and others are in growth. These therapies work by concurrently binding to a T cell and a most cancers cell. Harpoon develops tri-specific T cell engagers. Along with binding to a T cell and a most cancers cell, the Harpoon therapies even have a website that extends the remedy’s half-life.
Lead Harpoon drug candidate HPN328 is designed to focus on DLL3, a most cancers protein expressed at excessive ranges in small cell lung most cancers and neuroendocrine tumors. The Harpoon remedy is in Section 1/2 testing as a monotherapy in sufferers with superior cancers that categorical DLL3. This trial can also be evaluating the remedy together with Roche immunotherapy Tecentriq in sufferers with small cell lung most cancers. In a be aware despatched to traders, Leerink Companions analyst Jonathan Chang wrote that the agency believes Harpoon shareholders will welcome the deal as a result of it locations the biotech’s belongings within the fingers of a giant pharma firm with oncology experience to drive their growth within the aggressive area for T cell engagers.
The deal phrases name for Merck to pay $23 money for every share of Harpoon. That worth is a 118% premium to Harpoon’s closing inventory worth on Friday. Merck and Harpoon count on to finish the transaction within the first half of this 12 months.
Novartis Expands in Autoimmune Illness With Calypso Buyout
Novartis is increase its autoimmune illness drug pipeline with the acquisition of privately held Calypso Biotech, a spinout of Merck KGaA. Amsterdam-based Calypso has specific experience in antibodies that focus on interleukin-15, or IL-15. This signaling protein controls barrier operate and performs a task in lots of power autoimmune illnesses.
Lead Calypso program CALY-002 is an antibody that binds to and neutralizes IL-15. This program has reached section 1b testing in celiac illness and eosinophilic esophagitis. Novartis mentioned it plans to discover this antibody throughout many autoimmune indications, although it didn’t specify which of them.
In line with the deal phrases, Novartis can pay $250 million up entrance. One other $175 million is tied to the achievement of milestones.
Photograph: Mario Tama, Getty Photos
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