Finance, Grants, Deals

Two European cell therapy companies have decided to merge in order to create a pipeline of allogeneic cell therapies directed against both solid and blood-borne tumours. The merger will see Sweden-based Immunicum AB take control of DCprime BV of the Netherlands through the issuance of 74 million shares valued at about SEK 600 million (€59 million). DCprime’s majority shareholder, Van Herk Investments BV, will hold approximately 43% of the combined company. Together, the new entity is expected to have funding to support product development into the beginning of 2022.

Novartis has entered into a licencing and collaboration agreement with Australia-based Mesoblast Ltd to further develop and commercialise remestemcel-L, an allogeneic cell therapy for the treatment of a number of inflammatory disorders. These include acute respiratory distress syndrome, and that associated with Covid-19. Acute respiratory distress syndrome is a type of respiratory failure characterised by the rapid onset of inflammation in the lungs.

A new venture fund designed to provide seed funding to start-up companies in the UK life science sector has raised £15 million. Start Codon Fund I LP was created by the Start Codon business accelerator. The limited partner investors in the fund include Novartis International AG and Cambridge Innovation Capital, a venture investor focused on opportunities in the Cambridge University ecosystem.

The Roche Group is to in-license viral vector technology from the German biotech company CEVEC Pharmaceuticals GmbH in order to increase its manufacturing capacity for gene therapies. This will specifically enable the company’s subsidiary Spark Therapeutics to scale up production of its marketed product Luxturna for retinal diseases which is delivered by an adeno-associated virus (AAV). Luxturna was approved in the US for a rare form of inherited vision loss in 2017. An EU approval followed in 2018.

With the help of a large Chinese investor, Congenica Ltd has completed a $50 million Series C funding round to advance its technology for analysing genomic data. The financing was co-led by Tencent Holdings Ltd, a Chinese conglomerate, and Legal & General Group, the financial services company. The proceeds will be used to expand the company’s analysis services to include somatic cancers as well as to generate information about wellness.

Merck & Co Inc is to acquire VelosBio Inc for $2.75 billion in cash giving it ownership of an early clinical stage antibody-drug conjugate (ADC) targeting receptor tyrosine kinase-like orphan receptor 1 (ROR1). The drug, VLS-101, is being evaluated in Phase 1 and Phase 2 clinical trials for the treatment of patients respectively, with haematologic malignancies and solid tumours.

Sanofi SA is to make a public offer valued at €308 million to acquire Kiadis Pharma NV of the Netherlands, a cell therapy company with a pipeline of therapies based on natural killer (NK) cells of the innate immune system. The two companies have been collaborating since July on a combination therapy for multiple myeloma.

Sanofi is offering to pay €5.45 per share for the Dutch company which represents a premium of 272% over the closing price of its shares on Euronext Amsterdam and Euronext Brussels on 30 October. The transaction is expected to complete in the first half of 2021.

Abivax SA has raised €28 million from US and European investors to advance development of its lead small molecule drug, ABX464, in several inflammatory indications and Covid-19. ABX464 recently reported positive data in a Phase 2a study of patients with ulcerative colitis including a high remission rate at the end of a second year of treatment.

A readout of Phase 2b data in this indication is expected in the second quarter of 2021. ABX464 is also being studied in Crohn’s disease, rheumatoid arthritis, and as an antiviral treatment for HIV.

Addex Therapeutics Ltd is to receive $2.8 million in new research funding as part of an extended agreement with Indivior Plc, a specialty pharma company developing treatments for addiction disorders. The two companies have been working together since early 2018 and the amended agreement will now run until 30 June 2021.

Novartis has expanded its presence in the gene therapy field with the acquisition of Vedere Bio Inc, a US gene therapy company launched in 2019 by Atlas Venture, an early-stage venture capital fund. Vedere has technology for potentially restoring vision in patients whose sight has been impaired by the loss of photoreceptor cells. The technology is based on optogenetics which describes a biological technique for using light to control neurons related to sight.