Kelun strikes third deal with Merck Co. for ADCs, this time with $175 million upfront

ACQUISITIONS

Kite to acquire Tmunity to pursue next generation CAR T cell therapies in cancer

Tmunity’s clinical programs include TnMUC1-01, which targets MUC1 to treat a basket of solid-tumor cancers, and TmMSLN-01 for mesothelin-positive cancers. Its preclinical programs include therapies for plasma cell and B cell malignancies that are based on an armored CAR T technology designed to counteract the immunosuppressive tumor microenvironment, as well as programs for glioblastoma, neuroblastoma and other solid tumors. Kite won’t be adding Tmunity’s projects targeting PSMA or PSCA, which will be spun out into a separate organization. Last year, two patients died due to immune effector cell-associated neurotoxicity syndrome and macrophage activation syndrome in a study of its TmPSMA-01 CAR T program, leading to its termination. Tmunity had downsized its staff and restructured in the wake of the first prostate cancer program’s discontinuation. Tmunity had raised two large venture rounds and a seed round during its seven-year lifespan. Gilead had participated in its $135 million series A round in 2018 as well as its $75 million series B in 2019.

PARTNERING

Kelun strikes third deal with Merck Co. to develop ADCs

Merck & Co. deepened its commitment to ADCs by forging its third deal with Kelun this year, this time adding up to seven preclinical oncology candidates to its pipeline. The Kelun-Biotech will receive $175 million up front from Merck, which also intends to make an equity investment in the Chinese company. Total milestones associated with the seven antibody-drug conjugates add up to $9.3 billion. The deal also includes tiered royalties. The partners described the deal as including both licenses and options, and said the deal excludes options or rights to undisclosed ADCs in mainland China, Hong Kong and Macau, where Kelun retains rights.

Kite and Arcellx announced strategic collaboration to develop CART-ddBCMA in multiple myeloma

Arcellx and Kite, a Gilead company, announced a global strategic collaboration to co-develop and co-commercialize Arcellx's lead late-stage product candidate, CART-ddBCMA, for the treatment of patients with relapsed or refractory multiple myeloma.  Currently in Phase 2 development, CART-ddBCMA is an investigational cell therapy product comprising autologous T cells that have been genetically modified to target multiple myeloma. CART-ddBCMA utilizes Arcellx's novel D-Domain binder. Kite and Arcellx will jointly advance the CART-ddBMCA asset. Arcellx will receive an upfront cash payment of $225 million and $100 million equity investment.  Both companies will share development, clinical trial, and commercialization costs for CART-ddBCMA and will jointly commercialize and split US profits 50/50. Outside the US, Kite will commercialize the product and Arcellx will receive royalties on sales. Kite will be responsible for the development and commercialization costs for any product under the collaboration that is not co-commercialized. After completion of the technical transfer, Kite will be responsible for manufacturing.

Mersana signs deal with German Merck to develop ADCs against cancer

Mersana Therapeutics will leverage its immunostimulatory ADC platform to discover STING agonist antibody conjugates for up to two targets in its third major collaboration of 2022 — this one with Merck KGaA. Mersana will receive an upfront payment of $30 million, and is eligible for up to $800 million in regulatory, development and commercial milestones, plus tiered royalties up to low double-digits.