French drugmaker Sanofi has agreed to acquire clinical-stage biopharmaceutical company Kymab in a deal valued at around $1.45bn.
As per terms of the deal, Kymab will secure an upfront payment of up to $1.1bn from Sanofi. Kymab is also eligible to secure up to $350m based on the achievement of certain milestones.
Kymab is focused on the development of developing fully human monoclonal antibody therapeutics using its integrated platforms collectively called IntelliSelect.
IntelliSelect Transgenic platforms include a full diversity of human antibodies, thereby helping to offer comprehensive antibody platforms.
Kymab CEO Simon Sturge said: “With its significant global resources, we believe Sanofi is the perfect partner to progress Kymab’s pipeline of products and the merger will expedite the time it takes for our novel therapies to get to patients.”
The deal will provide Sanofi with full global rights to KY1005, a fully human monoclonal antibody with a novel mechanism of action.
KY1005, which attaches to OX40-ligand, is believed to hold the potential to treat a range of immune-mediated diseases and inflammatory disorders.
In August 2020, Kymab stated that KY1005 achieved both primary endpoints in a phase 2a trial, which evaluated moderate to severe atopic dermatitis patients whose disease is inadequately controlled with topical corticosteroids.
Kymab’s pipeline consists of ICOS agonist monoclonal antibody called KY1044, which is currently under early phase 1/2 development as monotherapy and in combination with an anti-PD-L1. The deal will also allow Sanofi to access new antibody technologies and research capabilities.
Sanofi CEO Paul Hudson said: “The Kymab acquisition adds KY1005 to our dynamic pipeline, a potential first-in-class treatment for a range of immune and inflammatory diseases. The novel mechanism of action may provide treatment for patients with suboptimal responses to available therapies.”
The deal, subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions, is expected to be completed in the first half of this year.
Weil, Gotshal & Manges is serving as Sanofi’s legal counsel for the transaction, while J.P. Morgan is acting as financial advisor to Kymab and Goodwin is serving as its legal counsel.