BioNTech Acquires Neon Therapeutics for $67 Million to Advance Personalized Cancer Immunotherapies

On January 17, 2020, VCBeat (WeChat ID: vcbeat) learned from foreign media that European biopharmaceutical giant BioNTech announced the acquisition of Neon Therapeutics (“Neon”) for a total consideration of approximately $67 million. The transaction, structured as an all-stock deal, is expected to close in the second quarter of 2020.

Following the completion of this acquisition, Neon will operate as a subsidiary of BioNTech, serving as the latter’s clinical research and development center in the United States. In addition, Neon’s preclinical drug candidates, NEO-PTC-01 and NEO-STC-01, will be integrated into BioNTech’s product portfolio.

Neon, founded in 2015 and headquartered in Cambridge, Massachusetts, USA, is a biopharmaceutical company focused on cancer immunotherapy. The company develops cancer vaccines by targeting proteins on the surface of cancer cells from tumor patients and provides personalized T-cell therapies based on neoantigens. These personalized vaccines enhance immune responses to help patients fight cancer. In June 2018, Neon went public on the NASDAQ Stock Exchange under the ticker symbol NTGN.

NEO-PTC-01 is Neon’s latest new drug development project. This candidate personalized T-cell therapy, derived from patients’ peripheral blood mononuclear cells (PBMCs), targets neoantigens in cancer patients. The Dutch Health Authority has approved Neon to conduct a Phase I clinical trial to evaluate its efficacy as a checkpoint inhibitor in patients with metastatic melanoma. In addition, Neon has launched NEO-STC-01, an experimental T-cell therapy targeting shared RAS neoantigens. The RAS gene has become a hot target in cancer drug development.

At the end of 2019, Neon Therapeutics announced layoffs and corporate restructuring, aiming to chart a new course for development. The company stated that it would subsequently focus on its T-cell therapy development programs. Additionally, Neon Therapeutics is exploring strategic alternatives, including becoming an R&D division of the cancer drug developer BioNTech.

BioNTech, founded in 2008 and headquartered in Mainz, Germany, is the largest privately held biopharmaceutical company in Europe. The company primarily focuses on developing personalized therapies for cancer and other diseases, with core technologies including mRNA-based cancer immunotherapies, cell and gene therapies, and protein therapeutics. As one of the three global leaders in mRNA therapeutics, BioNTech operates world-leading cGMP manufacturing facilities. The company went public on the NASDAQ Stock Exchange in October 2019, trading under the ticker symbol BNTX.

To date, BioNTech has established strategic partnerships with multiple international pharmaceutical companies, including Bayer, Eli Lilly (NYSE: LLY), Genmab (NASDAQ: GMAB), and Sanofi (NYSE: SNY). In addition, the company has received investments from Pfizer, Sanofi, and MIG. This acquisition will further expand BioNTech’s presence in the United States.

Sean Marett, Chief Commercial Officer of BioNTech, stated: “The heterogeneity of tumors means that cancer immunotherapy should not be one-size-fits-all; instead, it requires personalized therapies tailored to each individual. While T-cell therapy may be applicable in certain cases, vaccines can sometimes offer superior efficacy.”

SVB Leerink analyst Daina Graybosch stated, “Overall, the acquisition of Neon is a prudent decision as BioNTech expands its strategic markets. Neon’s neoantigen and cell therapies will help BioNTech mitigate clinical execution risks.”

(Compiled by Xu Xiaoxue)