Jazz strikes new chord with AbCellera in T cell engager pact that could top $2.4B

 

Jazz Pharmaceuticals is diversifying its oncology strategy, orchestrating a new antibody deal with AbCellera that offers $56 million upfront, plus $792 million in biobucks for each of the three initial programs.

Jazz Pharmaceuticals is banding together with AbCellera, paying $56 million cash and offering up to some $2.46 billion in total to develop next-generation T cell engagers for hard-to-treat cancers.

The collaboration features AbCellera’s multispecific T cell engager (TCE) platform, science that will be fine-tuned in hopes of creating candidates for multiple gastrointestinal (GI) cancers and other solid tumors for which current treatments fall flat.

AbCellera will perform discovery and early-stage research for two initial programs, with plans to start a third discovery program in the next year, according to a Wednesday release.

For each program, Jazz can opt in for a fee that would grant the biopharma exclusive rights to the candidate. Should Jazz exercise its option, AbCellera could be in line to receive up to $792 million in milestone payments per program, plus tiered royalties.

For the work on the first two programs, Canada-based AbCellera will receive $56 million upfront. The biotech will get another $28 million when work on the third program begins. Under the terms of the deal, the partners can also tack on two additional programs, though potential payments for these were not disclosed.

“This research collaboration with AbCellera directly aligns with Jazz’s rare disease strategy, expanding our focus on GI cancers and building on our existing expertise in oncology,” Jazz Chief Scientific Officer Josh Allen said in the release. “We look forward to collaborating with AbCellera to progress potential best-in-class TCE multispecific antibodies for GI cancers and other solid tumors into clinical development and to develop meaningful innovation for patients.”

For Truist analysts, the move underscores Jazz’s growing focus on GI cancers. The expansion builds off Ziihera, a bispecific HER2-directed antibody that has secured priority review for a label expansion into first-line HER2+ gastroesophageal adenocarcinoma, with an FDA decision expected on or by Aug. 25.

“We view continued external BD as reinforcing the balanced-portfolio thesis as JAZZ’s onco lean-in and diversification effort has been lively,” Truist wrote in a Wednesday morning note.

“While this deal brings additional oncology flavor to the JAZZ platform, we continue to anticipate recurring BD activity in rare disease spaces,” the analysts added.

The move also comes directly after Jazz’s alkylating drug Zepzelca failed to improve overall survival for patients with relapsed metastatic small cell lung cancer in a Phase 3 trial last week. The study brings a
second line expansion into question, Truist analysts said in a June 12 note, adding, however, that they see the first-line indication as the primary growth driver.

Now Jazz will have access to AbCellera’s platform, which includes proprietary panels of CD3-binding antibodies and rapid testing systems to help design multispecific drugs.

“Building on years of experience in TCEs, we are pleased to partner with Jazz Pharmaceuticals to leverage AbCellera’s differentiated TCE platform to bring forward novel cancer treatments for GI cancers and other solid tumors,” AbCellera founder and CEO Carl Hansen said in a prepared statement.

AbCellera has also teamed up with AbbVie, last year expanding an existing deal to include TCEs for oncology.

https://www.biospace.com/deals/jazz-strikes-new-chord-with-abcellera-in-t-cell-engager-pact-that-could-top-2-4b