Gilead Extends Push Into Oncology With Agenus R&D Pact
Executive Summary
Allying itself with US biotech Agenus underscores Gilead's oncology ambitions, which incoming CEO-designate Daniel O'Day must make good on.
Gilead Sciences Inc. signaled its continuing push into cancer immunotherapy by inking a deal with Agenus Inc. to develop and commercialize up to five novel immuno-oncology treatments, an arrangement potentially worth more than $1.8bn for the Lexington, Massachusetts-based biotech.
For Gilead, the R&D pact with immunotherapy specialist Agenus is its latest effort to enter the oncology field and help offset the impact of its waning hepatitis C business. (Also see "Top 20 Pharma Ranks: As Some Move Up, Others Fall Down" - Scrip, 13 Dec, 2018.)
"Our collaboration with Agenus gives us access to novel and differentiated immune modulating antibodies that will complement our growing oncology portfolio and cell therapy business." - Gilead's R&D head John McHutchison
Gilead's ambitions in the field of cancer should only be strengthened by the arrival next year of Roche pharma veteran Daniel O'Day as its new CEO.
Its deal with Agenus provides Gilead with exclusive, worldwide rights to AGEN1423, a bispecific tumor microenvironment conditioning antibody, for which IND filing is planned by the end of 2018.
Gilead will also receive the exclusive option to license two additional programs: AGEN1223, a bispecific Treg depleting antibody, and AGEN2373, a CD137 targeting monoclonal antibody.
Agenus has already filed the IND for AGEN1223 and plans an IND filing for AGEN2373 in the first half of 2019.
The parties will also collaborate on two other treatment candidates, but they gave no details.
Deal Terms
Under the terms of the agreement, announced Dec. 20, Agenus will receive $150m upon closing, which includes a $120m upfront cash payment and a $30m equity investment. The agreement also includes approximately $1.7bn in potential future fees and milestones.
Agenus will be responsible for developing the option programs up to trigger points at which time Gilead will decide on acquiring exclusive rights to the programs.
For one of the option programs, the biotech will have the right to opt into shared development and commercialization in the US. Gilead will also receive right of first negotiation for the two additional, undisclosed preclinical programs.
"Our collaboration with Agenus gives us access to novel and differentiated immune modulating antibodies that will complement our growing oncology portfolio and cell therapy business," Gilead's R&D head John McHutchison said.
That cancer portfolio has been expanding through R&D deals and acquisitions.
In August 2017, Gilead bought Kite Pharma Inc. and its chimeric antigen receptor T-cell (CAR-T) pipeline for $11.9bn. (Also see "What's Gilead Getting From Kite For Nearly $12bn?" - Scrip, 29 Aug, 2017.)
In October 2018 Gilead joined cancer start-up Tango Therapeutics Inc. to develop targeted immuno-oncology treatments aimed at up to five targets emerging from Tango’s functional genomics-based discovery platform, a pact worth potentially more than $1.7bn