AstraZeneca to acquire cell therapy startup for $425M upfront

AstraZeneca has announced its intention to acquire the cell therapy biotechnology company EsoBiotec for an initial payment of $425 million. The UK-based pharmaceutical giant has also committed to additional payments of up to $575 million, contingent on the achievement of certain developmental and regulatory milestones. The acquisition sheds light on a novel approach to cell therapy that could potentially transform treatment options for certain cancer patients.

EsoBiotec, a relatively young biotech firm founded just four years ago, specializes in developing innovative therapies for cancer treatment. Its leading product, ESO-T01, employs an immune-shielded lentiviral vector to reprogram T lymphocytes, creating BCMA CAR-T cells within the patient's body. This innovative approach is currently under investigation in a China-based clinical trial involving patients with relapsed or refractory multiple myeloma, with data expected in the latter half of 2025. EsoBiotec's CEO, Jean-Pierre Latere, expressed confidence in ESO-T01's efficacy, highlighting its promising performance in early studies.

AstraZeneca's head of oncology and hematology research, Susan Galbraith, emphasized the strategic decision to partner with EsoBiotec. The choice was influenced by the impressive data presented by the Belgian biotech at the JP Morgan Healthcare Conference, showcasing the cell kinetics of treated patients. Galbraith noted the lentiviral vector's ability to remain active in the patient's peripheral circulation, ensuring efficient transduction of target T cells.

Galbraith pointed out a significant challenge in current cell therapies: only a small fraction of eligible patients receive treatment due to its complexity and lengthy processing times. Traditional cell therapy methods involve extracting cells from the patient, modifying them in a laboratory, and then reinfusing them, a process that can take several weeks. During this time, patients often require lymphodepletion to prevent immune reactions.

EsoBiotec's approach offers a promising alternative by potentially eliminating the need for immune depletion and significantly shortening the production time for therapeutic cells. Latere emphasized the cost-effectiveness of this method, suggesting it could be substantially cheaper than existing autologous CAR-T therapies. However, given that human trials have only recently commenced, these claims will require validation through forthcoming study results.

AstraZeneca is also exploring opportunities to integrate EsoBiotec's technology with its existing portfolio of cancer drugs. This acquisition represents a strategic move to expand its capabilities in cell therapy. The simplicity and scalability of EsoBiotec's approach, likened to that of traditional biologics, is expected to facilitate widespread implementation across AstraZeneca's global markets.

Upon completion of the acquisition, EsoBiotec will become a wholly owned subsidiary of AstraZeneca, while maintaining its operations in Belgium. This move aligns with AstraZeneca's broader objective of scaling innovative therapeutics across its extensive network. Additionally, the acquisition follows EsoBiotec's successful venture funding round in December, in which the company raised €22 million.

In summary, AstraZeneca's acquisition of EsoBiotec represents a significant investment in advancing cell therapy technology. With potential implications for the treatment of multiple myeloma and other cancers, the collaboration aims to make cell therapies more accessible, efficient, and cost-effective for patients worldwide. As the clinical trial progresses, the medical community eagerly anticipates the results, which could validate this groundbreaking approach to cancer treatment.