Biotech companies this week spent on experimental therapies, including autoimmune drugs, next-generation obesity pills and cancer combinations.
- Novartis inked a deal with China’s Abogen on Friday, marking the week’s largest headline number, at up to $7.8 billion.
- Sanofi and Regeneron, partners since 2007 on the eczema drug Dupixent, said on Thursday they will co-develop four new long-acting antibodies aimed at the same kind of inflammation.
- Novo paid $300 million upfront for rights to HRS-1596 outside mainland China, Hong Kong, Macao, and Taiwan, in a deal worth up to $2.6 billion including milestones.
Drugmakers spent the week buying time in the categories they cannot afford to lose: experimental autoimmune drugs, next-generation obesity pills and cancer combinations.
Novartis and Novo Nordisk went to China for early RNA and oral metabolic assets. Sanofi paid to extend the inflammation franchise behind Dupixent. AstraZeneca and Merck, meanwhile, invested in cancer mechanisms.
Novartis Bets On An RNA Immune Drug
Novartis inked a deal with China’s Abogen on Friday, marking the week’s largest headline number, at up to $7.8 billion. Under the deal, Novartis gets exclusive worldwide rights to ABO2203, an RNA drug designed to make the body produce a protein that clears disease-causing immune cells. The target diseases are autoimmune conditions such as lupus and rheumatoid arthritis.
Abogen also gave Novartis options on other programs from its RNA platform. The deal includes an upfront payment of $575 million; the remaining $7.2 billion depends on development, approval, and sales milestones, and on those options being taken. Royalties would follow if a drug is sold. The deal still needs customary clearances.
Sanofi Pays To Extend Dupixent Franchise
Sanofi and Regeneron, partners since 2007 on the eczema drug Dupixent, said on Thursday they will co-develop four new long-acting antibodies aimed at the same kind of inflammation. Sanofi’s $1 billion upfront is the largest cash payment of the week, against a $7.8 billion ceiling at Novartis that is mostly milestones.
The companies will split development costs and profits on the new drugs equally. Dupixent’s existing split does not change. One candidate, REGN20423, is already in early testing for atopic dermatitis. The other three are expected to enter studies in 2027. The pact also settles litigation between the two companies.
Novo Licenses A Once-Weekly Obesity Pill
Novo Nordisk’s Tuesday agreement with Hengrui was narrower than the Novartis pact.
HRS-1596 is ready for early human testing as a once-weekly oral treatment that hits two appetite and blood-sugar pathways, GLP-1 and GIP. Novo paid $300 million upfront for rights outside mainland China, Hong Kong, Macao, and Taiwan, in a deal worth up to $2.6 billion including milestones, plus royalties on sales in that territory. Hengrui has Chinese clearance to start early-stage studies in weight management and type 2 diabetes. The license still needs U.S. antitrust clearance and is expected to close in the fourth quarter.
AstraZeneca Invests $2B To Test Summit’s Cancer Drug
AstraZeneca’s $2 billion investment in Summit Therapeutics, announced late Monday, is equity, not a license. The point is access to ivonescimab, a dual-target antibody that blocks PD-1, an immune brake, and VEGF, a signal tumors use to build blood vessels. The companies will test it with AstraZeneca’s experimental cancer drug sonesitatug vedotin in certain gastrointestinal cancers. Each side keeps the rights to its own molecule.
Merck Takes A Lab-Stage Cancer Pill
Merck’s Monday deal is the earliest of the week. SPR2015, from SciBrunch, is a lab-stage pill aimed at KRAS G12D, a common cancer mutation with few approved drugs aimed at it. Merck takes worldwide rights for $400 million upfront, in a deal worth up to $2.13 billion, and will book that payment as a third-quarter charge of about $0.13 a share. SciBrunch can earn the rest if the drug hits development and commercial goals.
How Did Retail Traders React?
On Stocktwits, retail sentiment around NVS and MRK was ‘bearish’ at the time of writing, while sentiment around AZN, SNY, and NVO was ‘neutral.’ Retail sentiment around SMMT and REGN, however, was ‘bullish’ or ‘extremely bullish.’
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