Seagen obtains rights to HER2 ADC disitamab vedotin in a deal worth up to $2.4 billion

M&As

Pfizer agrees to acquire Trillium Therapeutics for $2.26 billion

Pfizer and Trillium Therapeutics announced that the companies have entered into a definitive agreement under which Pfizer will acquire Trillium, a clinical stage immuno-oncology company developing innovative therapies for the treatment of cancer. Pfizer will acquire all outstanding shares of Trillium not already owned by Pfizer for an implied equity value of $2.26 billion, or $18.50 per share, in cash. This represents a 118% premium to the 60-day weighted average price for Trillium.

Trillium’s portfolio includes biologics that are designed to enhance the ability of patients’ innate immune system to detect and destroy cancer cells. Its two lead molecules, TTI-622 and TTI-621, block the signal-regulatory protein α (SIRPα)–CD47 axis, which is emerging as a key immune checkpoint in hematological malignancies. TTI-622 and TTI-621 are novel, potentially best-in-class SIRPα-Fc fusion proteins that are currently in Phase 1b/2 development across several indications, with a focus on hematological malignancies. In clinical studies to-date, TTI-622 and TTI-621 have demonstrated activity as monotherapy in relapsed or refractory lymphoid malignancies, including DLBCL, PTCL, Follicular lymphoma, and other lymphoid malignancies.

PARTNERING

Seagen and RemeGen announced exclusive global license to develop disitamab vedotin

Seagen and RemeGen have entered into an exclusive worldwide licensing agreement to develop and commercialize disitamab vedotin, a novel HER2-targeted ADC. Seagen will make a $200 million upfront payment to exclusively license rights to disitamab vedotin for global development and commercialization, outside of RemeGen’s territory. RemeGen will retain development and commercialization rights for Asia, excluding Japan and Singapore. Seagen will lead global development and RemeGen will fund and operationalize the portion of global clinical trials attributable to its territory. RemeGen will also be responsible for all clinical development and regulatory submissions specific to its territory. Seagen will pay RemeGen up to $2.4 billion in potential total milestone payments based upon the achievement of specified development, regulatory and commercialization goals across multiple indications and products. RemeGen will be entitled to a tiered, high single digit to mid-teen percentage royalty based on net sales of disitamab vedotin in Seagen’s territory. Disitamab vedotin combines the drug-linker technology originally developed by Seagen with RemeGen’s novel HER2 antibody exhibiting higher affinity and an increased internalization rate as compared to trastuzumab. Promising combination activity was demonstrated with a PD-1 inhibitor in urothelial cancer. Disitamab vedotin is conditionally approved for treating locally advanced metastatic gastric cancer in China, and in July 2021 the NMPA of China also accepted NDA for disitamab vedotin in metastatic urothelial carcinoma.

Kite and Appia Bio to collaborate on allogeneic cell therapies against cancer

Appia Bio signed a deal with the Kite Pharma, a Gilead company, to jointly develop CAR-engineered invariant natural killer T (CAR-iNKT) cell therapies for oncology. Appia will receive an upfront, equity investment, and milestone payments for a total value of up to $875 million as well as tiered royalties. Appia Bio will be responsible for preclinical and early clinical research of two HSC-derived CAR-iNKT product candidates engineered with CARs provided by Kite. Kite is responsible for development, manufacturing, and commercialization of the product candidates identified through the collaboration.

ADC Therapeutics enters into a financing agreement with HealthCare Royalty Partners

ADC Therapeutics announced it had entered into a royalty purchase agreement with HealthCare Royalty Partners. Under the capped royalty deal, ADC Therapeutics will receive $225 million upon closing, and is eligible to receive an additional $75 million upon the first commercial sale of Zynlonta (loncastuximab tesirine) in Europe and an additional $25 million upon the achievement of a near-term commercial milestone for Zynlonta. In exchange, HealthCare Royalty will receive a 7% royalty on worldwide net sales and licensing revenue from Zynlonta, except for greater China, Singapore and South Korea, and a 7% royalty on worldwide net sales and licensing revenue from Cami (camidanlumab tesirine). Based on performance tests in 2026 and 2027, these royalty rates are subject to potential upward adjustment, up to a maximum of 10%. The total royalty payable by ADCT to HealthCare Royalty is capped in the range of 2.25x to 2.5x of the amount paid to ADC Therapeutics, dependent upon the amount of royalties paid by 2029. Once the cap is hit, the agreement terminates.