AstraZeneca selects initial Treg cell therapy from Quell Therapeutics partnership

AstraZeneca has chosen to license a cell therapy from Quell Therapeutics, resulting in a $10 million milestone payment to Quell. The decision follows the selection of a candidate for the type 1 diabetes (T1D) Treg cell therapy program, according to a press release on November 18. This is the first asset licensed by AstraZeneca, as part of its ongoing collaboration with Quell, a London-based biotech firm, initiated last year.

With this new development, AstraZeneca will handle future responsibilities of the therapy, including clinical trial applications and investigational new drug (IND) application-enabling studies. Quell will continue to provide support in chemistry, manufacturing, and controls (CMC), and will supply the drug product for the first human trial. The agreement allows Quell the option to co-develop the therapy alongside AstraZeneca in the United States, receiving additional milestone payments and increased royalties on net sales.

The collaboration between AstraZeneca and Quell, established last year, targets two autoimmune diseases: T1D and inflammatory bowel disease (IBD). The initial agreement included an $85 million upfront payment, supplemented by over $2 billion in milestone payments. Mene Pangalos, AstraZeneca's BioPharmaceuticals R&D executive vice-president, expressed the company's excitement in tapping into the potential of Treg cell therapies for autoimmune conditions.

Treg therapy involves the use of regulatory T cells and represents an emerging treatment approach for diseases caused by an overactive immune system, such as autoimmune disorders. AstraZeneca's interest in this technology is shared by other pharmaceutical giants; for example, Bristol Myers Squibb invested in Abata Therapeutics in August to advance a multiple sclerosis candidate.

Quell, founded in 2019 by six Treg specialists from University College London and King’s College London, has developed a platform that sustains the expression of the FOXP3 protein in Treg cells. FOXP3 is a critical regulator of Treg cell gene expression and is essential for their suppressive activity. Quell's leading candidate, QEL-001, is a Treg therapy aimed at improving acceptance in liver transplantations, currently undergoing a Phase II trial. Additionally, three other programs are in the preclinical stage, including QEL-003 for IBD, developed in collaboration with AstraZeneca.

The licensing option comes amid a period of uncertainty for AstraZeneca, whose shares fell last week following the announcement that vaccine skeptic Robert F. Kennedy Jr. would head the US Department of Health and Human Services (HHS). AstraZeneca, known for its Covid-19 vaccine developed with the University of Oxford, is currently pursuing significant expansion in the United States, including enhancements to its manufacturing capacity.

Quell’s Treg platform, which ensures the sustained expression of FOXP3, is a crucial aspect of these developments. The ongoing collaboration between AstraZeneca and Quell aims to leverage cutting-edge Treg cell therapy to address significant medical needs in autoimmune diseases. As the partnership advances, it holds the potential to bring transformative treatments to market, offering new hope to patients with conditions like T1D and IBD.