Novartis banks on $150M Dren Bio deal for bispecifics success

Novartis has had a mixed history with bispecific antibodies, but a recent agreement indicates its continued belief in the therapeutic approach. According to a Wednesday announcement, Novartis will collaborate with Bay Area-based Dren Bio to discover and develop new bispecific antibodies for cancer. This partnership will leverage Dren Bio’s Targeted Myeloid Engager and Phagocytosis Platform.

As part of the deal, Dren Bio will receive $150 million upfront from Novartis, which includes a $25 million equity investment. Additionally, there are potential milestone payments that could total up to $2.85 billion. If the collaboration results in a successful drug program, Novartis will assume responsibility for development, manufacturing, regulatory affairs, and commercialization.

Shiva Malek, Ph.D., global head of oncology for biomedical research at Novartis, commented on the agreement, emphasizing its potential to harness novel bispecific antibody therapies for cancer. Malek highlighted Novartis’ extensive experience in immuno-oncology science as a cornerstone for this new venture.

Dren Bio’s primary asset, DR-01, targets autoreactive CD8 T cells and is currently undergoing phase 2 trials for cytotoxic lymphomas. The company's platform is specifically designed to activate myeloid cells by engaging a phagocytotic receptor unique to those cells.

Novartis' previous attempts with bispecific antibodies have seen mixed results. In April 2023, as part of a broader reduction of 10% of its R&D pipeline, the Swiss pharmaceutical giant dropped a BCMAxCD3 bispecific antibody that was under investigation for multiple myeloma. At the time, Novartis cited intense competition from other companies targeting BCMA as a reason for the decision.

Additionally, Novartis had earlier licensed two bispecific antibodies from Xenor in a deal worth $2.6 billion in 2016. However, by 2021, both candidates had been discontinued.