Ligand and Agenus Ink $100M Royalty Deal

Ligand Pharmaceuticals Incorporated (Nasdaq: LGND) and Agenus Inc. (Nasdaq: AGEN), a pioneer in immunological cancer treatments, have announced a significant royalty financing agreement. This partnership is designed to bolster Agenus' key projects, particularly the BOT/BAL clinical development program. This program includes a confirmatory Phase 3 trial focusing on metastatic, relapsed/refractory colorectal cancer patients without active liver metastases.

Under the agreement, Ligand will provide $75 million to Agenus upfront, with an option for an additional $25 million investment on the same terms. In return, Ligand will gain 18.75% of future royalties and 31.875% of future milestone payments from six of Agenus' clinical-stage oncology programs. These programs include collaborations with major pharmaceutical companies such as Bristol Myers Squibb, Gilead Sciences, Incyte, Merck, and UroGen Pharma. Ligand’s share of potential milestones could exceed $400 million, accompanied by low single-digit royalties. Additionally, Ligand will receive a 2.625% royalty on future global net sales generated by BOT/BAL.

The partnership aims to support the clinical development and launch readiness activities of botensilimab and balstilimab. BOT/BAL has shown promising results in various cancers, including colorectal, pancreatic, lung, and melanoma. This comprehensive support from Ligand is expected to enhance Agenus' capabilities in advancing these treatments.

Todd Davis, CEO of Ligand, expressed optimism about the collaboration, highlighting the diversified interest across multiple oncology products. He praised Agenus' progress in pushing BOT/BAL forward, indicating its potential to deliver significant value to patients and substantial revenue. Davis also noted that Ligand's investment team conducted thorough diligence on these valuable assets before entering the agreement.

Garo Armen, Chairman and CEO of Agenus, echoed the sentiment, emphasizing the transformative potential of BOT/BAL in treating solid tumors. He noted that the partnership with Ligand will accelerate efforts to bring these therapies to patients in need. Armen stressed the broad potential impact of ongoing partnered programs, many of which are showing promising clinical results.

To date, over 900 patients have been treated with BOT/BAL in clinical trials across various difficult-to-treat solid tumors. The therapy has shown potential when combined with chemotherapy and other standard treatments, as well as in immunotherapy-only combinations, particularly in colorectal cancer (CRC). In April 2023, the BOT/BAL combination received Fast Track Designation from the U.S. Food and Drug Administration for treatment in patients with relapsed/refractory microsatellite-stable colorectal cancer without liver metastases.

Agenus, headquartered in Lexington, Massachusetts, continues to lead in immuno-oncology, focusing on cancer and infectious disease treatments. The company’s pipeline includes antibody therapeutics, adoptive cell therapies, and adjuvants aimed at expanding the patient populations benefiting from cancer immunotherapy.

Botensilimab, a multifunctional anti-CTLA-4 immune activator, is designed to enhance both innate and adaptive anti-tumor responses. It is intended to extend the benefits of immunotherapy to tumors that typically respond poorly to standard treatments. In clinical trials, botensilimab has shown promising results across several metastatic cancers.

Ligand Pharmaceuticals, based in Jupiter, Florida, supports scientific advancement through financing and technology licensing, aiming to generate value for stockholders by creating a diversified portfolio of biopharmaceutical product revenue streams. Ligand partners with other pharmaceutical companies to leverage their expertise in late-stage development, regulatory management, and commercialization.

The collaboration agreement between Ligand and Agenus represents a strategic move to advance promising oncology treatments, leveraging the strengths of both companies to bring new therapies to market and potentially transform cancer treatment paradigms.