Boehringer to boost oncology with $572m Tessellate Bio acquisition

Boehringer Ingelheim has embarked on a significant collaboration with UK biotech firm Tessellate Bio to advance cancer treatments targeting the alternative lengthening of telomeres (ALT) mechanism. This mechanism is a unique process that supports the survival of certain difficult-to-treat tumors and represents a promising avenue for novel cancer therapies. The partnership involves a financial commitment of €500 million ($572 million) from Boehringer Ingelheim, which includes an upfront licensing fee, research funding, and milestone payments contingent upon developmental and commercial successes.

Tessellate Bio has been pioneering research on small molecule inhibitors that target an undisclosed element crucial to the survival of ALT-positive cancer cells. Their preclinical studies suggest that inhibiting this target causes DNA damage and replication stress, resulting in the selective destruction of tumor cells reliant on the ALT mechanism, while sparing normal cells unaffected by this pathway. This innovative approach could provide a significant breakthrough for patients with these challenging cancer types.

This agreement with Boehringer marks Tessellate's first collaboration with a major biopharmaceutical player, although it has been laying the groundwork for such partnerships. In September 2024, Tessellate began a key research initiative with Australian research organizations CMRI and Omico to further understand ALT activity across different tumors. The company also secured €8 million in seed funding from BioGeneration Ventures and Forbion as it made its public debut in October 2023.

For Boehringer Ingelheim, the partnership with Tessellate is a part of its strategic initiative to expand its presence in the oncology sector. The German pharmaceutical giant has been actively pursuing research and development agreements to enhance its cancer treatment portfolio. In October 2024, Boehringer entered into a partnership with Circle Pharma to develop a novel cyclin inhibitor under a deal valued at up to $607 million. This was accompanied by the opening of a €60 million ($66.8 million) research facility in Vienna, dedicated to advancing innovative cancer treatments.

Boehringer's existing oncology offerings include Giotrif (afatinib), which targets EGFR-mutated non-small cell lung cancer (NSCLC), and Vargatef (nintedanib), aimed at specific lung cancer types. The company is also progressing late-stage developments such as brigimadlin, an MDM2-p53 antagonist undergoing clinical trials for dedifferentiated liposarcoma (DDLPS), and zongertinib, a tyrosine kinase inhibitor being evaluated for HER2-mutated NSCLC.

In a continued effort to bolster its oncology pipeline, Boehringer established two additional licensing agreements in January 2025. The first agreement with Synaffix provides Boehringer with access to an antibody-drug conjugate (ADC) platform, potentially worth up to $1.3 billion, covering several undisclosed targets. The second agreement extends its collaboration with Oxford BioTherapeutics, allowing Boehringer to further develop a fourth novel target, with Oxford BioTherapeutics receiving development milestones and royalties, while Boehringer assumes full development and commercial responsibilities.

This strategic expansion underscores Boehringer Ingelheim's commitment to advancing cancer research and treatment, aiming to bring new hope to patients facing difficult-to-treat tumors through innovative and targeted therapeutic approaches.