Business

AstraZeneca agrees deal worth up to £990m to buy biotech company

AstraZeneca buys US biotech company and its experimental blood cancer drug for up to £990m

  • AstraZeneca will spend $100 million upfront to acquire all of TeneoTwo’s equity
  • The acquisition is expected to be completed in the third quarter
  • Until its spin-off, TeneoTwo belonged to the biotech group Teneobio

AstraZeneca has agreed to acquire a biotechnology company in a deal that will expand its pipeline of hematology drugs.

The pharmaceutical giant said it has agreed to spend up to $1.27 billion (£990million) to buy TeneoTwo, including one of its experimental treatments for the common blood cancer non-Hodgkin’s lymphoma.

It will pay $100 million up front to acquire all of the company’s equity, followed by up to $1.17 billion in milestone payments dependent on its research and development (R&D) and commercial performance.

Acquisition: Astrazeneca said it has agreed to spend up to £990million to buy TeneoTwo, including one of its experimental treatments for non-Hodgkin lymphoma

The acquisition is expected to close in the third quarter, subject to regulatory approvals, and is not expected to impact AstraZeneca’s current financial outlook for the year.

TeneoTwo was formerly part of American biotech Teneobio until it was spun off when the latter company was bought by Amgen for $900 million 12 months ago.

It is currently testing experimental drug TN-486, a therapeutic antibody known as a T-cell attacker. These are molecules designed to trigger certain white blood cells in a person’s immune system to recognize and kill cancer cells.

The drug is currently in a Phase I clinical trial in 80 patients with either relapsed or refractory B-cell non-Hodgkin’s lymphoma who had received at least two prior lines of treatment.

This non-randomized study has been ongoing for more than a year and is expected to be completed in June 2023.

Anas Younes, AstraZeneca’s senior vice president of hematology R&D, said that the drug, either alone or in combination with CD20-targeted therapy, “could potentially deepen clinical response and improve patient outcomes.”

“We believe that this innovative molecule, designed to optimize the therapeutic window of T-cell activation, will enable us to explore novel combinations that have the potential to become new standards of care in this area will.”

Should trials of the TN-486 treatment be successful, the FTSE 100 group will have further expanded its portfolio of hematology drugs, joining those like Calquence, a key drug in the treatment of non-Hodgkin’s lymphoma.

Calquence was one of AstraZeneca’s top-10-selling drugs of 2021, with sales jumping 137 percent year over year to more than $1.2 billion.

Last year, the company also spent $13.3 billion to acquire Boston-based Alexion Pharmaceuticals, a specialist in rare disease drugs.

Alexion’s line of medicines for treating blood disorders includes Soliris and Ultomiris, both of which treat PNH, a disease in which red blood cells break down, and the rare kidney disease Atypical Hemolytic Uremic Syndrome.

AstraZeneca Shares closed Tuesday’s trading down just 8 points, or 0.07 percent, to £108, despite its value having risen nearly 28 percent over the past six months.

advertisement



AstraZeneca agrees deal worth up to £990m to buy biotech company

Source link AstraZeneca agrees deal worth up to £990m to buy biotech company

Back to top button