AbbVie invests $650 million to join nascent but crowded cancer drug R&D field
AbbVie is diversifying its oncology pipeline, spending $650 million on a clinical-stage drug that targets two anti-cancer targets. It's the latest in a series of industry deals for assets in this emerging drug class, and like other drugs, AbbVie's new large molecule comes from China.
The drug, called RC148, was developed by China's Yantai RemeGen. The terms of the deal announced on Monday give AbbVie global rights to RC148, excluding Greater China, where Rongchang Biotech retains rights.
The protein targets of RC148 are PD-1 on immune cells and VEGF on cancer cells. PD-1 is a so-called checkpoint protein that prevents immune cells from recognizing cancer cells; blocking it allows the immune system to respond to tumors. VEGF promotes blood vessel formation that promotes tumor growth. RC148 is a bispecific antibody designed to block both PD-1 and VEGF.
In addition to engaging the immune system in the fight against cancer, the dual mechanisms of bispecific antibodies hold the promise of overcoming the ways in which tumors become resistant to drugs. This approach also makes the tumor microenvironment (the ecosystem surrounding a tumor) more conducive to cancer drugs called antibody-drug conjugates (ADCs). Therefore, companies are exploring combinations of PD-1 and VEGF bispecific drugs with ADCs.
AbbVie and Remegen said early clinical testing of RC148 in combination with an ADC “has shown preliminary promising anti-tumor activity.” In addition, AbbVie also sees opportunities to combine Rongchang Biopharmaceuticals with North Chicago Pharmaceuticals' own ADCs, including the experimental drug telisotuzumab adizutecan, for solid tumors such as non-small cell lung cancer and colorectal cancer.
“By combining the immune checkpoint inhibition and anti-angiogenic activity of RC148 with the targeted cytotoxic activity of an ADC, we have the potential to identify meaningful options for a range of patients with solid tumors,” said Daejin Abidoye, president, AbbVie's oncology, solid tumors and hematology therapeutic area leader, in a prepared statement.
AbbVie is likely to have more to say about the drug and its cancer drug strategy later this week. The company plans to hold a fireside chat Wednesday morning during the annual J.P. Morgan Healthcare Conference in San Francisco.
Chinese companies with PD(L)1/VEGF bispecific antibodies include Summit Therapeutics, Merck, BioNTech and Pfizer. Crescent Biopharma has a PD-1/VEGF bispecific antibody from the United States; last month, it entered into an agreement with Crescent Biotech to acquire the rights to the Chinese biotech ADC to develop it as a monotherapy and as part of a drug portfolio.
Instil Bio was developing a PD-L1/VEGF bispecific drug licensed from a Chinese company, but announced last week that it would halt development and terminate the license. Instil did not give any reason, but the company may have concluded that the asset is no longer competitive in this increasingly competitive space.
The financial world is taking note of the growing competition from bispecific antibodies. Leerink Partners analyst David Risinger said in a note to investors that Remegen's RC148 has the potential to become AbbVie's blockbuster product, but the market for PD-1/VEGF bispecific antibodies is crowded. Data showing differentiation may soon emerge. Remegen's drug is currently being evaluated in three Phase 2 trials in China for breast cancer and other types of solid tumors. All three studies are expected to produce data this year, Risinger said.
In addition to the upfront payment, terms of the deal announced Monday also require AbbVie to be responsible for up to $4.95 billion in milestone payments. AbbVie will also be responsible for paying royalties on sales of RC148 outside Greater China if the drug enters the market.
AbbVie expands its manufacturing capabilities
In other AbbVie news, the pharmaceutical company announced on Monday that it has reached an agreement to acquire the West Pharmaceutical Services manufacturing site in Tempe, Arizona. AbbVie said the deal is part of a $10 billion capital commitment to expand U.S. drug manufacturing.
For the Tempe plant, AbbVie said it plans to hire about 200 employees and invest more than $175 million. In addition to paying for the acquisition, the funds will be used to modernize the facility and integrate it into AbbVie's global manufacturing network. AbbVie did not disclose which drugs it plans to manufacture in Tempe, saying only that the deal includes the transfer of multiple production lines and in vivo injector technology to support production of current and next-generation AbbVie immunology and neuroscience drugs.
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