DealForma’s review of cancer R&D partnerships, M&A, venture funding, and IPOs highlights major investments in immunotherapies, targeted radiotherapies, and AI-driven drug discovery in 2024. LaNova granted Merck exclusive rights to develop LM-299 for cancer with a $588 million upfront payment and up to $2.7 billion in milestones, Dren Bio partnered with Novartis on bispecific antibodies for multiple myeloma in a $125 million upfront deal with $2.9 billion in potential milestones, and PeptiDream licensed peptide-drug conjugates to Novartis for $180 million upfront and up to $2.7 billion in milestones.
In M&A, Novartis acquired MorphoSys for $2.9 billion, ONO Pharmaceutical acquired Deciphera for $2.4 billion, and AstraZeneca acquired Fusion Pharmaceuticals for $2.4 billion, expanding their oncology pipelines. Venture funding saw Xaira raising $1 billion in series A for AI-driven drug discovery, ArsenalBio securing $325 million for T-cell therapies, and Amethyst Radiotherapy obtaining €300 million ($323 million) to expand oncology services. IPOs included CG Oncology raising $437 million for bladder cancer therapies, Tempus AI securing $410 million for AI-powered precision medicine, and Bicara Therapeutics generating $362 million for bifunctional cancer treatments.
Cancer R&D Partnerships
During 2024, Cancer R&D partnerships increased to 163 deals but saw a decline in total deal value to $68.6 billion. Upfront cash and equity dropped to $6.1 billion, averaging $103 million per deal. In contrast, 2023 recorded 157 deals with a higher total value of $104.2 billion and $8.1 billion in upfront payments, averaging $145 million per deal. Over both years, 320 deals were made, totaling $172.8 billion.
Top Cancer R&D Partnerships
LaNova development and commercialization deal with Merck – November 2024
LaNova granted Merck exclusive worldwide rights to develop and commercialize LM-299, a bispecific antibody targeting PD-1 and VEGF for multiple cancer indications. Currently, in a Phase 1 trial in China, LM-299 integrates immunotherapy and antibody technology to enhance cancer treatment. LaNova received a $588 million upfront payment and is eligible for up to $2.7 billion in development, regulatory, and commercialization milestones. This partnership strengthens Merck’s oncology pipeline, advancing innovative therapies targeting tumor immune evasion and angiogenesis.
Dren Bio development and commercialization deal with Novartis – July 2024
Dren Bio granted Novartis exclusive rights to develop and commercialize bispecific antibodies for multiple myeloma and other cancers. The collaboration integrates Dren Bio’s targeted cell depletion, myeloid engager, and phagocytosis platforms with Novartis’s development and commercialization expertise. Dren Bio will lead early-stage research, while Novartis assumes responsibility for clinical development, manufacturing, and commercialization. The deal includes a $125 million upfront payment, a $25 million equity investment, and up to $2.9 billion in milestones, plus royalties.
PeptiDream development and commercialization deal with Novartis – April 2024
PeptiDream granted Novartis exclusive global rights to develop and commercialize peptide-drug conjugates for cancer treatment. Utilizing its Peptide Discovery Platform System (PDPS), PeptiDream will identify and optimize macrocyclic peptide targets selected by Novartis, which will be conjugated with radionuclides for radiotherapy applications. The deal includes a $180 million upfront payment, with PeptiDream eligible for up to $2.7 billion in development and milestones, plus tiered royalties.
Cancer M&A
During 2024, cancer M&A activity remained steady at 72 deals but saw a lower total value of $24.6 billion, or $21.0 billion excluding contingent payments, with an average upfront of $637 million per deal. In contrast, 2023 also recorded 72 deals but with a higher total value of $38.8 billion ($35.1 billion without contingents) and a significantly higher average upfront of $2.1 billion. Over both years, 144 deals were completed, totaling $63.4 billion with contingents and $56.2 billion without.
Top Cancer M&A
Novartis acquiring MorphoSys for $2.9B – February 2024
Novartis announced the acquisition of MorphoSys, strengthening its oncology portfolio with key assets. The deal includes Monjuvi, a CD-19 inhibitor approved for diffuse large B-cell lymphoma and in late-stage trials for follicular and marginal zone lymphoma; pelabresib, a BET inhibitor in late-stage development for myelofibrosis; and tulmimetostat, an early-stage dual EZH2/EZH1 inhibitor for solid tumors and lymphomas. MorphoSys shareholders received €68 ($73.18) per share, reflecting an 18% premium, for a total equity value of €2.7 billion ($2.9 billion). Novartis’s public takeover offer required at least 65% shareholder acceptance and regulatory approvals, with the acquisition finalized on April 11, 2024.
ONO Pharmaceutical acquiring Deciphera Pharmaceuticals for $2.4B – April 2024
ONO Pharmaceutical announced the acquisition of Deciphera Pharmaceuticals, expanding its gastrointestinal cancer portfolio. The deal includes approved Ripretinib for gastrointestinal stromal tumors (GIST), Phase III Vimseltinib for solid tumors, and a pipeline of early-stage candidates, including DCC-3116, DCC-3084, and DCC-3009. Deciphera shareholders received $25.6 per share, representing a 74.7% premium, for a total equity value of approximately $2.4 billion. ONO completed the acquisition on June 11, 2024.
AstraZeneca acquiring Fusion Pharmaceuticals – March 2024
AstraZeneca announced the acquisition of Fusion Pharmaceuticals, enhancing its radiotherapy pipeline for cancer treatment. Fusion’s key assets include Phase II FPI-2265 for prostate cancer, along with early-stage candidates FPI-1434, FPI-2059, and FPI-2068 for solid tumors. Shareholders received $21.00 per share, reflecting a 97% premium, with a $2 billion upfront payment and up to $3.00 per share in contingent value rights (CVR) for regulatory milestones, bringing the total deal value to approximately $2.4 billion. AstraZeneca completed the acquisition on June 4, 2024.
Cancer Venture Funding
During 2024, cancer venture funding reached 169 rounds, raising $10.3 billion with an average of $65 million per round. This marked an increase from 2023, which saw 159 rounds totaling $7.5 billion, averaging $51 million per round. Over the two years, 328 rounds raised a combined $17.8 billion.
Â
Top Cancer Venture Funding
Xaira – Series A – $1B – April 2024
Xaira Therapeutics, a San Francisco-based biotech startup, emerged from stealth with over $1 billion in committed funding. Lead investors Arch Venture Partners and Foresite Capital, which incubated the company, were joined by Sequoia Capital, Lightspeed Venture Partners, and others. Led by founding CEO Marc Tessier-Lavigne, former Stanford University president, Xaira aims to leverage AI-driven drug discovery. This substantial funding round positions Xaira as one of the best-capitalized startups in AI-powered biotech innovation.
ArsenalBio – Series C – $325M – September 2024
ArsenalBio raised a $325 million series C funding, bringing in new investors including ARCH Venture Partners, Regeneron Ventures, and Nvidia’s NVentures, alongside Milky Way Investments, Luma Group, and T. Rowe Price. Existing investors such as the Parker Institute for Cancer Immunotherapy, SoftBank Vision Fund 2, and Bristol Myers Squibb also participated. The funding will advance ArsenalBio’s proprietary T-cell therapies for solid tumors, including ovarian and kidney cancer treatments in early-stage trials. Since its 2019 spinout, the company has secured $700 million in total equity and funding.
Amethyst Radiotherapy – Series Unspecified – $323M – June 2024
Amethyst Radiotherapy Group, a leading European oncology company, secured a €300 ($323) million financing agreement with Ares Management Corporation’s credit funds. This investment supports Amethyst’s expansion across six countries, enhancing access to advanced radiotherapy treatments. With a focus on cutting-edge technology and patient-centered care, the company aims to meet the growing demand for high-quality cancer treatment.
Cancer IPO Activity
In 2024, the number of cancer-related IPOs rose to 14, raising $2.0 billion, surpassing 2023’s 10 IPOs that raised $1.0 billion. Over 2 years, 24 IPOs generated a total of $3.0 billion.
Top Cancer IPOs
CG Oncology – IPO – $437M – January 2024
CG Oncology, a late-stage biopharmaceutical company specializing in bladder cancer treatments, completed a $437 million IPO on NASDAQ (CGON). The company is advancing cretostimogene, a potential backbone bladder-sparing immunotherapy, with promising interim Phase 3 data showing a 75.2% complete response rate in BCG-unresponsive high-risk non-muscle invasive bladder cancer (HR-NMIBC). CG Oncology plans to release results from its CORE-001 Phase 2 trial (cretostimogene + pembrolizumab) and BOND-003 Phase 3 monotherapy trial by year-end.
Tempus – IPO – $410.7 M – May 2024
Tempus AI, Inc. (NASDAQ: TEM), a healthcare technology company leveraging AI for precision medicine, completed its $410 million IPO, offering 11.1 million shares of Class A common stock at $37.00 per share. Underwriters, advised by Davis Polk, have a 30-day option to purchase up to 1.67 million additional shares. Tempus AI utilizes the largest multimodal data libraries and an AI-driven operating system to enhance personalized patient care and accelerate therapeutic development.
Bicara Therapeutics – IPO – $362M – August 2024
Bicara Therapeutics Inc. (NASDAQ: BCAX), a clinical-stage biopharmaceutical company developing bifunctional therapies for solid tumors, completed its $362 million IPO. The offering included 20.13 million shares at $18.00 per share, with underwriters fully exercising their option to purchase an additional 2.63 million shares. Morgan Stanley, TD Cowen, Cantor, and Stifel acted as joint bookrunners. Bicara’s shares began trading on the Nasdaq Global Market on September 13, 2024.
Also check out R&D Partnerships, M&A, Ventures, & IPOs By TA – Cancer – 2023
