Genmab to acquire ProfoundBio in $1.8bn deal to enhance cancer treatment

In a landmark move within the biotechnology sector, Genmab A/S (Nasdaq: GMAB) and ProfoundBio, Inc. have announced a definitive agreement under which Genmab will acquire ProfoundBio for a staggering USD 1.8 billion in cash. This all-cash transaction underscores Genmab’s strategic intent to broaden its clinical pipeline and enhance its technological capabilities in the fight against cancer, particularly targeting ovarian cancer and other FRα-expressing solid tumors. ProfoundBio’s commitment to developing next-generation Antibody-Drug Conjugates (ADCs) and ADC technologies has positioned it as a crucial player in oncology biotechnology, making this acquisition a significant step for Genmab towards achieving 100% vertical integration.

This acquisition will grant Genmab worldwide rights to ProfoundBio’s portfolio, which includes three clinical and multiple preclinical ADC programs. Among these, Rina-S stands out as a potential best-in-class, FRα-targeted Topo1 ADC, currently undergoing a Phase 2 trial. Rina-S’s promising performance in clinical trials, especially for ovarian cancer and other FRα-expressing solid tumors, has already caught the attention of the U.S. Food and Drug Administration (U.S. FDA), which granted it Fast Track designation in January 2024.

Jan van de Winkel, Ph.D., President and CEO of Genmab, emphasized the alignment of this acquisition with the company’s long-term strategy and vision for 2030, aiming to impact patient lives through innovative antibody medicines. Similarly, ProfoundBio’s co-founder, CEO, and Chairman, Baiteng Zhao, Ph.D., highlighted the synergy between the two companies’ missions to improve cancer treatment outcomes.

The transaction, unanimously approved by the boards of both companies, is anticipated to close in the first half of 2024, pending customary closing conditions. Post-acquisition, Genmab expects an increase in operating expenses, primarily due to additional R&D investments in ProfoundBio’s clinical programs. However, Genmab’s revenue guidance remains unchanged, with further updates expected by the second quarter of 2024 earnings.

Goldman Sachs International and a suite of legal advisors are supporting Genmab in this transaction, while ProfoundBio is advised by BofA Securities, Inc., Morgan Stanley & Co. LLC, and a legal team comprising Cooley LLP, Travers Thorp Alberga, and Jun He Law Offices.

The acquisition of ProfoundBio by Genmab represents a pivotal moment in the biotech industry, showcasing a significant investment in the development of advanced cancer treatments. This move not only strengthens Genmab’s portfolio and technological foundation but also signals a strong commitment to innovating within the gynecologic oncology space. With Rina-S at the forefront, Genmab is poised to make considerable advancements in treating FRα-expressing solid tumors, potentially setting new standards in ADC therapies. This acquisition underscores the importance of strategic collaborations in accelerating the development of effective cancer therapies, promising a brighter future for patients worldwide.