Lyell Immunopharma to buy ImmPACT Bio, reduce key programs

Lyell Immunopharma has announced significant changes to its strategic direction, including the discontinuation of several programs and the acquisition of CAR-T biotech company ImmPACT Bio. This acquisition, valued at $30 million in upfront cash and 37.5 million shares of Lyell’s stock, is expected to finalize within the year.

The cornerstone of this acquisition is ImmPACT Bio's lead program, IMPT-314, a CD19/20 CAR-T candidate currently under investigation for its effectiveness against hematologic malignancies such as large B cell lymphoma. Lyell’s CFO Charlie Newton emphasized that the acquisition was driven largely by the potential of IMPT-314 in treating hematologic cancers. Lyell plans to initiate a pivotal trial next year targeting third-line patients who have not previously received CAR-T cell therapy and also explore its use in treating autoimmune diseases.

During a recent investor call, Lyell president and CEO Lynn Seely highlighted the promising results of IMPT-314 from an ongoing Phase 1/2 trial. Seely pointed out the candidate’s strong complete response rates and impressive duration of response, suggesting that IMPT-314 may capture significant market share in second and third-line treatments.

In line with its renewed focus on CAR-T therapies, Lyell will be discontinuing several in-house programs. This includes LYL797, their ROR1-targeted CAR-T candidate, and LYL845, their tumor-infiltrating lymphocyte (TIL) program. Additionally, preclinical programs focused on TIL and rejuvenation will be halted.

Despite these cutbacks, Lyell will continue advancing LYL119, another ROR1-targeted CAR-T candidate. The company plans to start enrolling patients later this year or in early 2025 for a Phase 1 trial. This trial will focus on patients with platinum-resistant ovarian cancer or relapsed/refractory endometrial cancer.

CEO Lynn Seely reassured stakeholders that the company has sufficient funds to operate through 2027 and achieve key data milestones for each of its continuing programs.