Percheron Therapeutics (ASX: PER) licenses HMBD-002 cancer drug from Hummingbird in oncology pivot

Percheron Therapeutics Limited (ASX: PER), the Australia-listed biotechnology firm, has announced a definitive global licensing agreement with Singapore-based Hummingbird Bioscience to acquire exclusive rights to HMBD-002, an immuno-oncology monoclonal antibody therapy targeting the immune checkpoint regulator VISTA. The deal marks a critical realignment of Percheron Therapeutics’ pipeline, which is now focused on advancing the phase II-ready cancer therapy after its prior lead candidate, avicursen (ATL1102), failed to deliver in Duchenne muscular dystrophy trials.

The licensing transaction, disclosed to the Australian Securities Exchange on June 26, 2025, includes an upfront cash payment of USD 3 million (approximately AUD 4.6 million), with additional performance-based milestone payments totaling up to USD 287 million (AUD 443 million). In addition, Hummingbird Bioscience is entitled to receive tiered royalties on future net sales, starting at a 12.5% rate.

Percheron Therapeutics stock surged 10% intraday following the announcement, rising to AUD 0.011 on elevated volume of nearly 14 million shares. The clinical-stage deal is widely seen as a potential inflection point for the AUD 11.96 million market-cap company, which has struggled to regain investor confidence following prior setbacks.

Why did Percheron Therapeutics acquire HMBD-002 and exit its Duchenne muscular dystrophy focus?

Percheron Therapeutics, previously known as Antisense Therapeutics Limited, had centered its pipeline around avicursen, an antisense oligonucleotide that failed to meet key efficacy endpoints in its international phase IIb trial for Duchenne muscular dystrophy in late 2024. The negative data prompted a strategic re-evaluation by the board in January 2025, which culminated in the decision to deprioritize avicursen and pursue a new clinical focus.

Between January and June 2025, Percheron Therapeutics reviewed over 100 asset candidates across 70 companies. HMBD-002 was selected due to its advanced clinical stage, compelling preclinical and phase I human data, and its fit within the growing field of immune checkpoint modulation. The selection underscores a strategic pivot from neuromuscular disorders to oncology, with the aim of re-entering the clinic in calendar year 2026.

According to Percheron Therapeutics Chief Executive Officer Dr. James Garner, the deal repositions the firm as a mid-clinical-stage drug developer. He emphasized that the HMBD-002 program is not only scientifically compelling but also strategically aligned with investor expectations for near-term clinical progress and commercial relevance.

What makes VISTA-targeting antibodies like HMBD-002 significant in the cancer immunotherapy landscape?

VISTA (V-domain Ig suppressor of T-cell activation) is an emerging immune checkpoint protein expressed on both immune and tumor cells. It functions as a negative regulator of T-cell activity, contributing to immune evasion by tumors. Unlike widely approved checkpoint targets like PD-1 and CTLA-4, which have already yielded blockbuster drugs such as Keytruda (pembrolizumab) and Opdivo (nivolumab), VISTA remains unvalidated in the clinic but has demonstrated promise in preclinical and early clinical models.

HMBD-002 is a recombinant monoclonal antibody designed to selectively bind to VISTA, thereby restoring T-cell activation in the tumor microenvironment. The drug candidate completed a U.S. FDA-regulated phase I trial at institutions such as MD Anderson Cancer Center, Stanford Cancer Institute, and Cedars-Sinai Medical Center. The trial confirmed that HMBD-002 was pharmacologically active and well-tolerated, both as a monotherapy and in combination with other checkpoint inhibitors like pembrolizumab.

This safety and mechanistic validation make HMBD-002 one of the few VISTA-targeting antibodies with meaningful clinical data, giving Percheron Therapeutics a potential first-in-class advantage in a high-value oncology niche.

How does the licensing deal structure benefit both Percheron and Hummingbird Bioscience?

The licensing agreement grants Percheron Therapeutics full global development and commercial rights across all indications and geographies. In addition to the upfront and milestone payments, Hummingbird Bioscience will provide a clinical-grade batch of the drug substance at no extra cost and offer technical assistance during the transfer of the program.

From a financial structuring standpoint, the deal back-ends most of its economic exposure to commercial milestones, easing immediate pressure on Percheron Therapeutics’ limited balance sheet. The royalty tiering system begins at 12.5%, aligning long-term incentives while deferring significant cash outflows until market approval or revenue generation.

For Hummingbird Bioscience, which is prioritizing other immuno-oncology and antibody-drug conjugate (ADC) programs such as HMBD-001 (a HER3-targeted therapy), the transaction allows reallocation of resources without abandoning a high-potential asset. The Singapore-based drug developer maintains economic upside while ceding operational responsibility to Percheron Therapeutics.

What clinical and commercial potential does HMBD-002 offer across cancer types and drug combinations?

Percheron Therapeutics has yet to finalize the specific tumor indications for phase II development but has indicated a broad addressable population. Based on VISTA’s expression in certain tumor types and the drug’s demonstrated synergy with PD-1 inhibitors, potential targets include lung, ovarian, colorectal, and triple-negative breast cancers.

The oncology-focused drugmaker is also evaluating whether to pursue monotherapy or combination trial designs. Early preclinical studies showed additive effects with pembrolizumab, and the completed phase I trial included combination arms with positive safety outcomes. The flexibility to pursue either strategy provides optionality for regulatory engagement and potential partnering down the line.

Institutional investors have shown growing interest in differentiated checkpoint pathways, especially those offering new mechanisms in patients refractory to PD-1/PD-L1 regimens. Percheron Therapeutics’ pursuit of this novel immune axis could attract external collaborations or funding opportunities once phase II is underway.

What is the expected timeline for phase II trials and regulatory milestones?

The Melbourne-headquartered firm expects to resume clinical development of HMBD-002 in calendar year 2026, following consultations with clinical advisors and regulatory authorities. Since the asset already has an open Investigational New Drug (IND) application with the U.S. FDA and completed GMP manufacturing runs, the anticipated regulatory and technical risk is lower than with a preclinical program.

Typical development timelines for novel oncology therapies starting from phase II suggest a three- to six-year path to potential marketing approval, contingent on trial design, indication specificity, and regulatory interactions. While the exact path for HMBD-002 will depend on patient selection and endpoints, Percheron Therapeutics’ access to prior clinical data positions it to expedite early phases of development.

What are the financial implications and investor outlook for Percheron Therapeutics post-licensing?

At AUD 0.011 per share and a market capitalization of just under AUD 12 million, Percheron Therapeutics remains a microcap biotech stock, yet one that has reignited institutional curiosity after a prolonged period of clinical and investor disillusionment. One-year returns remain sharply negative at –86.59%, highlighting the significance of delivering visible clinical progress over the next 12–18 months.

Trading activity spiked on the day of the announcement, suggesting that retail and forum investors may be re-engaging with the story. Institutional sentiment remains cautious but is likely to turn more favorable once detailed clinical trial protocols and timelines are disclosed in the third quarter of calendar year 2025.

Percheron Therapeutics has indicated that it will fund early-stage development through existing cash reserves, potential grant funding, and capital market transactions. The Australian Government’s R&D Tax Incentive will also support ongoing activities.

Future investor milestones include clinical trial design publication, IND amendments, site selection, and potential data readouts between late 2026 and early 2028.