Lyell Immunopharma to acquire ImmPACT—are CAR T-cell therapies the future of oncology?

Lyell Immunopharma is making waves with its strategic acquisition of ImmPACT Bio, a move aimed at bolstering its T-cell therapy capabilities. The transaction, valued at $30 million in cash alongside 37.5 million shares of Lyell common stock, is expected to close by the end of 2024. This acquisition is part of Lyell’s broader plan to refocus its pipeline on next-generation chimeric antigen receptor (CAR) T-cell therapies, particularly targeting aggressive forms of cancer such as B-cell lymphoma.

ImmPACT’s IMPT-314: A Pivotal Asset in the Deal

At the core of this acquisition is ImmPACT’s IMPT-314, a dual-targeting CD19/CD20 CAR T-cell therapy designed for patients with relapsed or refractory (R/R) aggressive B-cell lymphoma. Early clinical data suggest that IMPT-314 could surpass existing therapies, showing a 77% complete response rate in Phase 1 trials. The U.S. Food and Drug Administration (FDA) has already granted it Fast Track Designation, indicating its potential as a breakthrough treatment. Lyell intends to begin pivotal trials for IMPT-314 by 2025, with expectations that the therapy could significantly improve patient outcomes compared to existing treatments.

Pipeline Prioritisation: A Shift Toward High-Impact Therapies

The acquisition signals a decisive shift in Lyell’s development strategy. The company will not only prioritise IMPT-314 but also focus resources on LYL119, another CAR T-cell candidate enhanced with anti-exhaustion technology. LYL119 has shown promising preclinical results, particularly in non-small cell lung cancer (NSCLC) models, where it demonstrated efficacy at significantly lower doses than previous candidates. This technology is designed to extend the life span and effectiveness of T-cells, a critical component in improving the outcomes of cell therapy in solid tumours.

Meanwhile, Lyell is discontinuing less promising programmes such as LYL797 and its tumour-infiltrating lymphocyte (TIL) programme, which failed to meet clinical efficacy benchmarks. The company’s decision to streamline its pipeline underscores its commitment to focusing on high-potential therapies that align with its goal of developing durable cancer treatments.

Financial Strategy and Market Sentiment

Financially, the acquisition is structured to ensure long-term stability. In addition to the initial $30 million payment, ImmPACT shareholders will receive contingent stock options if clinical milestones are met. Lyell’s management projects that its cash reserves will support its operations through 2027, allowing for significant investments in clinical trials for both IMPT-314 and LYL119.

The announcement has garnered mixed reactions from the market. On the day of the news, Lyell’s stock (NASDAQ: LYEL) saw fluctuations as investors assessed the long-term implications of the acquisition. The company’s focus on CAR T-cell therapies reflects a trend in the biotech industry to specialise in innovative cancer treatments, particularly as competition intensifies in the oncology sector.

Expert Perspectives: A High-Stakes Move

Lynn Seely, CEO of Lyell, emphasised that the acquisition aligns with the company’s vision to enhance patient outcomes through advanced cell therapies. Seely highlighted the potential of IMPT-314, noting that early data suggests it could outperform existing CAR T-cell therapies, offering more durable clinical responses for patients with aggressive lymphomas. Meanwhile, ImmPACT’s CEO, Sumant Ramachandra, expressed confidence in Lyell’s ability to take their product to the next level, underscoring the collaboration’s potential to bring significant advancements to cancer patients.

Broader Implications: Expanding the Reach of CAR T-cell Therapies

Lyell’s acquisition of ImmPACT also highlights a broader trend in biotechnology, where companies increasingly focus on acquiring innovative technologies to enhance their therapeutic pipelines. With ImmPACT’s expertise, Lyell aims to expand the reach of CAR T-cell therapies, which are currently limited in treating certain aggressive cancers. The emphasis on both B-cell lymphomas and solid tumours like NSCLC indicates a comprehensive approach to capturing a significant market share in oncology.

Conclusion: A Long-term Vision for Cancer Treatment

As Lyell gears up to finalise the acquisition and commence pivotal trials for IMPT-314, the company is positioning itself as a leader in CAR T-cell therapies. The deal is not just about expanding its portfolio; it represents a strategic pivot toward therapies with the highest potential for market disruption. By prioritising resources on its most promising candidates, Lyell is betting big on the future of CAR T-cell technology as a transformative force in oncology.