Purple Biotech has signed an agreement to acquire Immunorizon, which develops potential multi-specific T and NK cell engager oncology therapies.
These therapies activate the immune response selectively within the microenvironment of the tumours.
Purple Biotech is acquiring all the shares of Immunorizon in exchange for $3.5m upfront payment in cash and another $3.5m in American Depository Shares (ADSs).
Additional long-term development, regulatory and sales milestones are set at $94m aggregate amount, with royalty payments of low single digit out of net sales.
The accumulated transaction payments, exclude the upfront payment, and will not be more than $100m.
With this acquisition, Purple Biotech will receive an expanded investigational tri-specific antibody compounds portfolio.
The compounds target multiple antigens and offer the potential for further expansion to more targets.
Purple Biotech CEO Gil Efron said: “The acquisition of these assets highly fits our strategy of expanding our pipeline, and we believe that the acquired technology platform has the potential to expand to multiple additional development programmes.
“We believe that we will be able to leverage the knowledge and expertise we have gained over the years through both preclinical and clinical development.
“We expect to advance the first of the newly acquired assets to an IND submission in approximately two years in parallel to our ongoing promising clinical programmes from which we expect to report clinical data during this year.”
Subject to satisfaction of customary closing conditions, the closing of the transaction is expected within ten business days.
The drug candidates to be acquired by Purple Biotech are differentiated from other multi-specific cell therapies that target 5T4+ tumours by its cleavable capping technology.
The acquisition will also provide additional preclinical assets to Purple Biotech targeting other TAAs through this technology.