Our Q2 2024 cancer review delves into R&D and licensing partnership activity, investments, IPOs and M&A. In R&D, PeptiDream expanded its peptide-drug conjugate partnership with Novartis in April, potentially earning up to $2.7 billion, while Caris Life Sciences teamed up with Merck to develop antibody-drug conjugates, with the deal valued at $1.4 billion. Kumquat Biosciences partnered with Takeda on immuno-oncology therapies, securing up to $1.2 billion in potential payments.
In M&A, ONO Pharmaceutical acquired Deciphera Pharmaceuticals for $2.4 billion, bolstering its oncology pipeline, and Genmab purchased ProfoundBio for $1.8 billion, focusing on therapies for solid tumors and lymphomas. Novartis’ $1 billion acquisition of Mariana Oncology added preclinical assets targeting small-cell lung cancer. In venture funding, Xaira Therapeutics raised $1 billion to advance AI-driven drug discovery, while Amethyst Radiotherapy secured $323 million to expand its European oncology services. ITM Isotope Technologies raised $205 million to enhance its radiopharmaceutical pipeline, particularly for treating gastroenteropancreatic neuroendocrine tumors.
The IPO market also saw activity, with Tempus AI raising $411 million to further its precision medicine platform for cancer and XtalPi securing $127 million in Hong Kong, marking the third-largest IPO in the city this year. Details to follow.
Cancer R&D Partnerships
During H1 2024, cancer R&D partnerships finalized 117 deals. In Q2 alone, 62 partnerships contributed a total deal value of $17.8 billion, with $1.0 billion in upfront cash and equity. An increase from Q1, where 55 deals were valued at $15.5 billion and $1.2 billion in upfront payments. Overall, H1 2024 saw a strong investment in cancer, with total deal values reaching $33.4 billion and upfront payments totaling $2.1 billion.
Top Cancer R&D Partnerships – Q2 2024
PeptiDream and Novartis Expand Peptide-Drug Conjugate Partnership – (April 2024)
PeptiDream has extended its partnership with Novartis, granting exclusive global rights to develop and commercialize peptide-drug conjugates. PeptiDream will use its Peptide Discovery Platform System (PDPS) to identify and optimize macrocyclic peptide targets for Novartis, which will then be conjugated with radionuclides. PeptiDream will receive $180 million upfront and could earn up to $2.7 billion in milestone payments, plus tiered royalties.
Caris Life Sciences and Merck Collaborate on Antibody-Drug Conjugates – (April 2024)
Caris Life Sciences has partnered with Merck, granting exclusive global rights to develop and commercialize antibody-drug conjugates (ADCs) for cancer. The deal leverages Caris’ AI-based multi-omics technology for target discovery. Caris will receive an undisclosed upfront payment and R&D funding and could earn up to $1.4 billion in milestone payments and tiered royalties.
Kumquat Biosciences and Takeda Partner on Immuno-Oncology Therapy – (April 2024)
Kumquat Biosciences has partnered with Takeda, granting exclusive global rights to develop and commercialize small molecule inhibitors for immuno-oncology. Kumquat will oversee phase 1 clinical development, while Takeda will provide funding and has the option to co-develop and share profits in the U.S. Kumquat is eligible for up to $130 million in near-term milestones and up to $1.2 billion in development, regulatory, and commercial milestones, along with tiered royalties.
Â
 Cancer M&A
During H1 2024, cancer M&As saw 31 deals. In Q2, there were 15 totaling $7.3 billion including contingents, and $6.4 billion in cash without contingents, a slight decrease from Q1, which had 16 worth $8.6 billion with contingents and $8.2 billion in cash without contingents. Overall, H1 2024 recorded $15.9 billion in M&A with contingents and $14.5 billion in cash-only deals.
Top Cancer M&A – Q2 2024
ONO Pharmaceutical Acquired Deciphera Pharmaceuticals – (April 2024)
ONO Pharmaceutical acquired Deciphera Pharmaceuticals for approximately $2.4 billion. Deciphera’s critical assets include the approved drug Ripretinib for gastrointestinal stromal tumors (GIST) and several pipeline candidates: Phase III Vimseltinib, Phase I DCC-3116, DCC-3084, and preclinical DCC-3009. The deal, completed on June 11, 2024, offered Deciphera shareholders $25.6 per share, representing a 74.7% premium.
Genmab Acquired ProfoundBio – (April 2024)
Genmab acquired ProfoundBio, which holds a range of assets, including Phase II Rinatabart Sesutecan for solid tumors, Phase I PRO-1160 for nasopharyngeal cancer, non-Hodgkin’s lymphoma, renal cell carcinoma, PRO-1107 for solid tumors, and multiple preclinical therapies. ProfoundBio received an upfront payment of $1.8 billion. The acquisition was finalized on May 21, 2024.
 Novartis Acquired Mariana Oncology – (May 2024)
Novartis acquired Mariana Oncology in May 2024, securing critical preclinical assets, including MC-339 for small-cell lung cancer and a radio-conjugation platform. Mariana Oncology received $1 billion upfront and is eligible for up to $750 million in milestone payments. The deal focuses on preclinical/IND stage assets targeting small-cell lung cancer using radiation and peptide-based radiotherapy technology.
Cancer Venture Activity
During H1 2024, cancer venture funding had 129 rounds totaling $7.6 billion. Activity surged in Q2, with 77 rounds bringing in $4.6 billion, up from Q1’s 52 rounds, which secured $3.0 billion.
Top Cancer Venture Deals Q2 2024
Xaira Therapeutics Raises $1B in Series A – (April 2024)
San Francisco-based Xaira Therapeutics launched with a $1 billion series A funding to revolutionize drug discovery through AI. The company, incubated by ARCH Venture Partners and Foresite Labs, has brought together top AI and drug development experts. Xaira aims to innovate in connecting biological targets with engineered molecules, incorporating technologies and teams from Illumina’s functional genomics R&D and Interline Therapeutics.
Amethyst Radiotherapy Secures $323M Series Unspecified – (June 2024)
Amethyst Radiotherapy Group obtained €300 million ($323 million) from Ares Management Corporation to strengthen its position in the European oncology sector. The funds will support Amethyst’s expansion, including investments in advanced radiotherapy technologies and establishing new treatment centers across Europe to improve access to high-quality cancer care.
ITM Isotope Technologies Secures $204.5M for Radiopharmaceutical Development – (June 2024)
ITM Isotope Technologies Munich SE raised €188 million ($205 million) led by Temasek, with contributions from BlackRock, QIA, ATHOS, and Carbyne. The funds will advance ITM’s radiopharmaceutical pipeline and prepare for the potential launch of ITM-11 (177Lu-edotreotide) for treating gastroenteropancreatic neuroendocrine tumors. Additionally, ITM plans to expand its manufacturing capabilities for Lutetium-177 and develop new radioisotopes like Actinium-225 to enhance its global supply network and Radiopharmaceutical Therapy pipeline.
Cancer IPO Activity
During H1 2024, the cancer sector witnessed 6 IPOs, collectively raising $1.3 billion. In Q1, 4 IPOs brought in $745 million, while 2 IPOs in Q2 generated $537 million.
Top Cancer IPOs – Q2 2024
Tempus Raises $411M – (May 2024)
Tempus AI, Inc. priced its IPO at $37.0 per share, offering 11 million Class A common stock shares, raising $411 million before deductions. The company granted underwriters a 30-day option to purchase an additional 1.7 million shares. Tempus specializes in advancing precision medicine through AI, focusing on cancer and other complex diseases. The platform supports personalized patient care and the discovery, development, and delivery of optimal therapeutics.
XtalPi Raises $126.7M in Hong Kong – (June 2024)
XtalPi, an AI-driven drug research company from China, raised 989 million Hong Kong dollars ($127 million) in its IPO on the Hong Kong Stock Exchange. Founded by MIT quantum physicists in 2015, XtalPi focuses on AI and robotic automation for drug research, particularly in oncology and other challenging disease areas. The company, which has raised $732 million to date, saw its shares rise 9.8% on the first day of trading, closing at HK$5.80. This IPO is 3rd largest in Hong Kong this year.
