Our Q2 2024 cancer review delves into significant R&D partnerships, M&As, and ventures reflecting strong activity for the sector. PeptiDream and Novartis expanded their peptide-drug conjugate collaboration in April, potentially valuing at $2.7 billion, with an upfront payment of $180 million. Similarly, Caris Life Sciences partnered with Merck on antibody-drug conjugates for cancer, with milestones potentially reaching $1.4 billion. On the M&A front, ONO Pharmaceutical acquired Deciphera Pharmaceuticals for $2.4 billion in June, enhancing its oncology portfolio with several promising drug candidates. Meanwhile, Genmab acquired ProfoundBio for $1.8 billion, focusing on solid tumor therapies, and Novartis acquired Mariana Oncology for $1 billion in May, eyeing novel cancer treatments. Ventures saw a surge, with Xaira Therapeutics launching in April with $1 billion in series A, aiming to innovate drug discovery using AI and proteomics. Additionally, BridgeBio Oncology Therapeutics secured $200 million in private financing in May to advance its KRAS and PI3K-focused oncology programs, while Obsidian Therapeutics raised $161 million in April to progress its tumor-infiltrating lymphocyte (TIL) cell therapy program for melanoma and non-small cell lung cancer (NSCLC).
Cancer R&D Partnership by Tech Grouping – Q2 2024
Q2 2024 cancer R&D partnerships firmly focused on small molecule technologies, leading with 13 deals worth $6.0 billion, including $318 million in upfront payments. Biologics followed with 11 deals totaling $4.0 billion and $151 million upfront. Genomics saw 10 deals valued at $1.8 billion, though upfront investments were lower at $20 million. Cell therapy secured 7 deals worth $1.3 billion with $120 million upfront. Despite only 2 gene editing/CRISPR deals, they garnered $470 million, including $100 million upfront. Diagnostics had the lowest, with 8 deals totaling $600,000. The quarter had 51 deals valued at $13.5 billion, with $709 million in upfront payments.
Top Cancer R&D Partnerships in Q2 2024
PeptiDream and Novartis Expand Peptide-Drug Conjugate Partnership – April 2024
PeptiDream collaborated with Novartis, granting exclusive global rights to develop and commercialize peptide-drug conjugates. Utilizing PeptiDream’s Peptide Discovery Platform System (PDPS), the focus is on macrocyclic peptide targets for oncology. PeptiDream will receive $180 million upfront and could earn up to $2.7 billion in milestone payments, plus tiered royalties. This deal builds on their original 2010 agreement.
Caris Life Sciences and Merck Partner on Antibody-Drug Conjugates – April 2024
Caris Life Sciences and Merck formed a strategic partnership in April 2024, giving Merck exclusive global rights to develop and commercialize antibody-drug conjugates (ADCs) for cancer. The collaboration leverages Caris’ AI-based multi-omics technology. While the upfront payment remains undisclosed, Caris is eligible for up to $1.4 billion in milestones and tiered royalties.
Kumquat Biosciences and Takeda Collaborate on Small Molecule Inhibitors – April 2024
Kumquat Biosciences partnered with Takeda, granting exclusive global rights to develop and commercialize small molecule inhibitors for immuno-oncology and autoimmune conditions. Kumquat will lead Phase 1 development, while Takeda funds the effort and may co-develop in the U.S. Kumquat is set to receive up to $130 million in near-term milestones and $1.2 billion in additional milestones, plus tiered royalties.
Cancer M&A by Tech Grouping – Q2 2024
In Q2 2024, cancer M&A activities focused on small molecule and biologics, each accounting for 3 deals. Small molecules led with a total M&A value of $2.6 billion, all in cash. Biologics followed with $2.0 billion, including $1.8 billion in non-contingent cash. Diagnostics also had 3 deals totaling $942 million, fully paid in cash. Cell therapy had 1 worth $45 million, with $35 million upfront. In total, 10 M&As were completed, with a combined value of $5.6 billion, $5.4 billion of which was non-contingent cash.
Top Cancer M&As – Q2 2024
ONO Pharmaceutical Acquires Deciphera Pharmaceuticals for $2.4 Billion – April 2024
ONO Pharmaceutical acquired Deciphera Pharmaceuticals, significantly enhancing its oncology portfolio. Deciphera’s assets include the approved drug Ripretinib for gastrointestinal stromal tumors (GIST), along with pipeline candidates such as Phase III Vimseltinib for solid tumors, Phase I DCC-3116 for GIST, DCC-3084 for solid tumors, and preclinical DCC-3009 for GIST. Shareholders will receive $25.6 per share, reflecting a 74.7% premium, bringing the total equity value to approximately $2.4 billion. The acquisition was completed on June 11, 2024.
Genmab Acquires ProfoundBio for $1.8 Billion – April 2024
Genmab acquired ProfoundBio, bolstering its position in developing therapies for solid tumors. ProfoundBio’s critical assets include Phase II Rinatabart Sesutecan for solid tumors, Phase I PRO-1160 targeting nasopharyngeal cancer, non-Hodgkin’s lymphoma, and renal cell carcinoma, and PRO-1107 for solid tumors. The deal, valued at $1.8 billion upfront, was finalized on May 21, 2024.
Novartis Acquires Mariana Oncology for $1 Billion – May 2024
Novartis announced its acquisition of Mariana Oncology, a company focused on innovative cancer treatments. Mariana’s leading assets include the preclinical candidate MC-339 for small-cell lung cancer and a radio-conjugation platform. The acquisition involved a $1 billion upfront payment, with potential milestone payments of up to $750 million.
Cancer Venture Activity by Tech Grouping – Q2 2024
In Q2 2024, cancer venture activity was dominated by biologics, which raised $1.3 billion across 18 funding rounds. Genomics, sequencing, and screening followed with $1.1 billion in just 3 rounds. Small molecules brought $551 million through 11 rounds. Immunotherapy and cell therapy raised $157 million and $61 million across 5 and 4 rounds, respectively. The quarter saw 41 funding rounds, generating $3.2 billion in ventures.
Top Cancer Venture Funding in Q2 2024
Xaira Therapeutics Launches with $1 Billion Series A Funding – April 2024
Xaira Therapeutics, a San Francisco-based biotech startup, secured $1 billion in series A funding. Backed by ARCH Venture Partners and Foresite Labs, Xaira aims to revolutionize drug discovery by integrating AI, data generation, and therapeutic product development. The company is focused on developing innovative methods to connect biological targets with engineered molecules, addressing various human diseases. Xaira’s platform is further strengthened by advanced technologies and expertise acquired from Illumina’s functional genomics R&D efforts and a proteomics team from Interline Therapeutics.
BridgeBio Oncology Therapeutics Secures $200 Million in Private Financing – May 2024
BridgeBio Oncology Therapeutics (BBOT), previously a subsidiary of BridgeBio Pharma, raised $200 million in private financing. The round was led by Cormorant Asset Management and Omega Funds, with additional support from Deerfield Management, Google Ventures, and others. This capital will accelerate BBOT’s oncology portfolio, including three critical programs: BBO-8520, a KRASG12C inhibitor in clinical trials for non-small cell lung cancer; BBO-10203, a PI3Kα breaker expected to begin trials in 2024; and BBO-11818, a pan-KRAS inhibitor with an IND filing anticipated in early 2025. BBOT also continues to explore discovery-stage research targeting oncogenic drivers within the RAS and PI3K pathways.
Obsidian Therapeutics Raises $161 Million in Series C Funding – April 2024
Obsidian Therapeutics, a clinical-stage biotech company based in Cambridge, MA, secured $161 million in an oversubscribed series C funding round led by Wellington Management. The funding will advance Obsidian’s tumor-infiltrating lymphocyte (TIL) cell therapy program, particularly developing its lead asset, OBX-115. This TIL cell therapy aims to enhance the immune cells extracted from within and around tumors. OBX-115 is currently in a Phase I trial for melanoma and a Phase I/II trial for non-small cell lung cancer (NSCLC). Obsidian is also backed by Bristol Myers Squibb and Novo Holdings, which joined in this latest round. The company raised $115 million in a series B round in 2021.
Also check out our research on Cancer R&D Partnerships, M&A, Ventures, and IPOs for Q2 2024
