BioNTech to acquire Biotheus, securing cancer bispecific

BioNTech is venturing into a significant area of oncology by acquiring China-based Biotheus in a deal worth $800 million. This acquisition will give BioNTech full global rights to a dual-targeting drug, which aims to block two proteins: PD-L1, targeted by Merck & Co.'s Keytruda, and VEGF, a protein that tumors use to promote their growth. This bispecific antibody type is gaining attention in the pharmaceutical industry after Summit Therapeutics showcased data that its drug ivonescimab outperformed Keytruda in a lung cancer trial.

Previously, BioNTech had partnered with Biotheus, but this acquisition deepens their involvement in this competitive field. The deal terms specify that BioNTech will pay $800 million mainly in cash, with a small portion in American depositary shares. Additionally, Biotheus shareholders have the potential to earn an extra $150 million based on the achievement of certain milestones.

The partnership between BioNTech and Biotheus began last November with a focus on developing the drug BNT327. At that time, BioNTech paid $55 million upfront and committed up to $1 billion in milestone payments for rights outside greater China. BNT327 combines the mechanisms of Keytruda, which helps immune cells attack tumors, and Roche's Avastin, which limits tumor spread by inhibiting blood vessel growth.

BioNTech and Biotheus have already made progress with BNT327, presenting promising data at the European cancer meeting ESMO in September. The drug shows potential in treating non-small cell lung cancer, kidney cancer, and a challenging type of breast cancer called triple negative breast cancer. The two companies have advanced the drug into Phase 2 trials for small cell lung cancer that has metastasized, as well as for widely spread triple negative breast cancer.

BioNTech's CEO and co-founder, Ugur Sahin, expressed optimism about BNT327, stating that it has the potential to establish a new care standard in various oncology indications, surpassing traditional checkpoint inhibitors. The company plans to initiate multiple registrational studies in the coming years.

With the acquisition of Biotheus, BioNTech will also expand its presence in China, gaining an additional R&D hub. Over 300 Biotheus employees will join BioNTech once the deal is finalized, expected in the first quarter of next year. This strategic move aligns with BioNTech's plans to present its oncology strategy to investors and analysts.

In an analysis note, Leerink Partners analyst Daina Graybosch suggested that PD-L1 and VEGF bispecific drugs could eventually replace Keytruda and similar drugs that solely inhibit immune checkpoints like PD-L1. However, Graybosch noted that there are still uncertainties regarding the bispecific approach.

Overall, BioNTech's acquisition of Biotheus marks a significant move in the oncology landscape, potentially offering new treatment options for various cancers and strengthening BioNTech's global footprint.