Genmab to Acquire China's ADC Biotech ProfoundBio for $1.8 Billion

 4Month3Day,Genmabwith Pufang Biologics (ProfoundBio) jointly announced, GenmabWill acquire Puheng Bio in an all-cash transaction.Genmabwill18hundred million USD (approx.130billion yuan) in cash to acquire Pufang Biologics, this acquisition will enable Genmab Secured global clinical development rights for three drug candidates, including rinatabart sesutecan (Rina-S) and ProfoundBio Novel Antibody-Drug Conjugates (ADC) Technical Platform.

ProfoundBio is a clinical-stage biopharmaceutical company focused on developing next-generation large-molecule targeted anticancer drugs. Its product pipeline primarily consists of antibody-drug conjugates (ADCs) and other antibody-based therapies. Leveraging its independently innovative technology platform, ProfoundBio has developed a series of ADC drug candidates targeting various tumor antigens, which are currently in the stages of drug discovery, preclinical development, and clinical development. The company’s current development pipeline includes rinatabart sesutecan (Rina-S; PRO1184), an ADC targeting folate receptor alpha (FRα); PRO1160, an ADC targeting CD70; PRO1107, an ADC targeting PTK7; and PRO1286, a bispecific ADC simultaneously targeting two solid tumor antigens.

On February 16, Pufang Biotech announced the completion of a $112 million oversubscribed Series B financing round to accelerate the development of its antibody-drug conjugate (ADC) pipeline, including advancing pivotal clinical trials of rinatabart sesutecan (Rina-S), an ADC candidate for the treatment of ovarian cancer.

This transaction will further broaden Genmab’s mid-to-late-stage clinical pipeline and strengthen and complement its already validated proprietary technology platforms.This acquisition will grant Genmab global rights to ProfoundBio’s next-generation antibody-drug conjugate (ADC) portfolio, which comprises three clinical-stage and multiple preclinical programs. The portfolio includes Rina-S, a potential best-in-class, clinical-stage Topo1 ADC targeting FRα, currently in Phase 2 of its Phase 1/2 clinical trial for the treatment of ovarian cancer and other FRα-expressing solid tumors.Furthermore, the integration of Puhui Biotech’s novel ADC technology platform with Genmab’s proprietary antibody platform is poised to create new opportunities for the discovery and development of novel therapeutics, thereby transforming cancer treatment paradigms and improving patient outcomes.

The addition of Rina-S to Genmab’s portfolio will enable Genmab to deepen its impact in gynecologic oncology and establish a solid foundation in the field of solid tumors. As a potential best-in-class antibody-drug conjugate (ADC), Rina-S is designed to address a broader patient population than first-generation FRα-targeted ADCs, based on data from ongoing Phase 1/2 clinical trials. Genmab intends to expand the development program for Rina-S in ovarian cancer and other FRα-expressing solid tumors. In January 2024, the U.S. Food and Drug Administration (FDA) granted Fast Track designation to Rina-S for the treatment of patients with FRα-expressing, platinum-resistant high-grade serous or endometrioid ovarian cancer.

The proposed transaction has received unanimous approval from the boards of directors of both companies and is expected to be completed in the first half of 2024. The completion of the proposed transaction is subject to the satisfaction of customary closing conditions.

Following the announcement of this transaction, Genmab’s operating expenses, before expenses related to the proposed transaction, are now expected to reach or slightly exceed the upper end of the previously announced guidance range of DKK 12.4 billion to DKK 13.4 billion. The projected increase reflects heightened R&D investment to support the advancement of Pufeng Biologics’ clinical programs, primarily Rina-S.

Dr. Jan van de Winkel, President and Chief Executive Officer of Genmab, stated: “The acquisition of ProfoundBio is fully aligned with our long-term strategy and our ambitious 2030 vision to impact patients’ lives through innovative antibody-based medicines. We believe that ProfoundBio’s ADC candidates, proprietary technology platform, and talented team will be a significant addition to Genmab, enabling us to jointly accelerate the development of innovative and differentiated antibody therapies for cancer patients.”