Inflammation, cancer therapies called antibody-drug conjugates, and next-generation T-cell engagers with possibilities in treating cancer drew the biggest capital in the relatively slow week for biotech dealmaking.
- Gilead Sciences agreed on Thursday to buy Shanghai-based PepStar Therapeutics’ experimental oral drug program for inflammatory diseases.
- Roche gained exclusive global rights to Zymeworks’ ZW209 in a deal worth up to $813 million plus royalties.
- Roche and Hansoh Pharma also expanded their antibody-drug conjugate partnership in a deal that could exceed $15 billion in total value.
Large drugmakers continued to favor targeted asset purchases and licensing deals for early-stage, differentiated candidates rather than full company acquisitions this week, implying a shift from earlier this year, when full-scale acquisitions dominated the sector.
Inflammation, cancer therapies called antibody-drug conjugates, and next-generation T-cell engagers with possibilities in treating cancer drew the biggest capital in the relatively slow week for biotech dealmaking, as companies sought to fill specific pipeline gaps. The sole exception was Merck KGaA’s roughly $1.3 billion purchase of Silence Therapeutics.
Gilead Acquires Oral Drug Program For $1.275B
Gilead Sciences (GILD) agreed on Thursday to buy Shanghai-based PepStar Therapeutics’ experimental oral drug program for inflammatory diseases, including its lead candidate HCXT-2001, for $1.275 billion in cash.
Gilead sees potential to develop the early-stage asset alone or in combination with its own oral drug emvistegrast as an all-oral approach for inflammatory bowel disease. The deal is expected to close in the fourth quarter and gives Gilead worldwide rights. The deal comes as part of Gilead’s efforts to expand its inflammation portfolio beyond its core HIV business and follows a mid-October collaboration deal with Vir Biotechnology.
Roche Licenses Zymeworks’ Drug For Lung Cancer
U.S.-listed shares of Switzerland-based Roche (RHHBY) gained exclusive global rights to Zymeworks’ (ZYME) ZW209 in a deal worth up to $813 million plus royalties. Zymeworks will receive $55 million upfront and $40 million upon initiation of a Phase 1b trial, with eligibility for up to $718 million in additional development, commercial, and sales milestones, plus tiered high-single-digit to mid-teen royalties.
Zymeworks will run the Phase 1a monotherapy study with Roche funding, after which Roche takes over global development and commercialization. The candidate targets DLL3, a protein commonly expressed on small-cell lung cancer cells.
Roche Expands ADC Collaboration With Hansoh
Roche and China-based pharmaceutical company Hansoh Pharma also expanded their antibody-drug conjugate (ADC) partnership in a deal that could exceed $15 billion in total value. Hansoh will receive $400 million upfront and $110 million on the first anniversary, plus eligibility for more than $15 billion in development, regulatory, and commercialization milestones, along with royalties.
The collaboration covers two preclinical Hansoh ADC programs and multiple additional programs against Roche-selected targets using Hansoh’s platform. Hansoh will lead development through global Phase 1a trials. Roche then takes over worldwide development outside Greater China, where Hansoh retains rights. The agreement builds on a prior single-asset ADC partnership and underscores Roche’s continued push into next-generation ADCs across multiple cancer types.
Merck KGaA To Acquire Silence Therapeutics For $1.3B
Merck KGaA on Monday agreed to acquire Silence Therapeutics (SLN) in an all-cash deal with an equity value of approximately $1.3 billion. The German drugmaker will pay $20 per American Depositary Share, representing a roughly 130% premium to the stock’s close before the deal announcement.
The main prize is divesiran, a late-stage-ready therapy for a rare blood cancer. The transaction is expected to close in the first quarter of 2027 and adds both a late-stage rare-disease asset and RNA technology to Merck’s pipeline.
On Stocktwits, retail sentiment around GILD was ‘neutral’ at the time of writing, while sentiment around RHHBY, ZYME, and SLN was ‘bullish’ or ‘extremely bullish.’
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