AstraZeneca to acquire cell therapy company Neogene Therapeutics

AstraZeneca will acquire Neogene Therapeutics, a US-based clinical-stage biotechnology company, for a total consideration of up to $320 million, bringing next-generation transformative cell therapies for cancer treatment.

The value of the transaction constitutes an initial payment of $200 million on post-closing and an additional payment of up to $120 million on hitting a certain number of milestones.

The acquisition of the cell therapy company is expected to provide AstraZeneca access to next-generation T-cell receptor therapies in the oncology space.

Neogene Therapeutics discovers, develops, and manufactures next-generation T-cell receptor therapies (TCR-Ts) for targeting neoantigens in solid tumors.

Susan Galbraith — AstraZeneca Oncology R&D Executive Vice President said: “This acquisition represents a unique opportunity to bring innovative science and leading experts in T-cell receptor biology and cell therapy manufacturing together with our internal oncology cell therapy team, unlocking new ways to target cancer.

“Neogene’s leading TCR discovery capabilities and extensive manufacturing experience complement the cell therapy capability we have built over the last three years and allow us to accelerate the development of potentially curative cell therapies for the benefit of patients.”

AstraZeneca to acquire cell therapy company Neogene Therapeutics in a deal worth up to $320m. Photo courtesy of AstraZeneca.

Unlike existing cell therapy methods that focus on changing the immune system’s T cells to identify proteins expressed on the surface of cancer cells, TCR-Ts can diagnose intracellular targets, including cancer-specific mutations.

Neogene Therapeutics is advancing its portfolio of fully individualized TCR therapies and TCR therapies targeting shared neoantigens, including mutated KRAS (mKRAS) and mutated TP53 (mTP53).

Carsten Linnemann — Neogene Therapeutics Co-Founder and CEO said: “We are excited to work together with AstraZeneca towards our shared mission of transforming the treatment options for patients with solid tumors using next-generation T-cell receptor therapies.”

With operations in Amsterdam, the Netherlands, and California, Neogene Therapeutics will operate as a wholly-owned subsidiary of AstraZeneca.

Expected to complete in Q1 2023, the deal is subject to regulatory clearances and customary closing conditions.

Earlier this year, AstraZeneca signed a deal worth up to $1.27 billion to acquire TeneoTwo, an American biotech company in a move to bolster its hematological cancer pipeline.