Novartis partners with Dren Bio in $3B myeloid engagers deal

Novartis has entered into a significant collaboration with California-based biotech company Dren Bio, potentially valued at up to $3 billion. The primary aim of this partnership is to advance targeted bispecific myeloid engager programs aimed at treating cancer. Announced on Wednesday, the collaboration will utilize Dren Bio's proprietary Targeted Myeloid Engager and Phagocytosis platform. This innovative technology is designed to eliminate pathogenic cells, protein aggregates, and other harmful agents by engaging a unique phagocytic receptor that is selectively expressed on myeloid cells.

As part of the agreement, Dren Bio will receive an initial payment of $150 million, which includes a $25 million investment in equity. Additionally, Novartis may pay up to $2.85 billion in milestone payments, and Dren Bio will be eligible for tiered royalties based on future net sales of any products that emerge from the collaboration. Once clinical candidates are chosen, Novartis will lead all subsequent development, manufacturing, regulatory, and commercialization efforts.

Shiva Malek, the global head of oncology for biomedical research at Novartis, described the collaboration as a "promising opportunity" to discover new bispecific antibodies for cancer. Malek noted that the collaboration aligns well with Novartis' broader strategic initiatives, which include a range of modalities such as targeted therapies, biologics, radioligands, and CAR-T therapies.

This deal is Dren Bio's second major collaboration with a pharmaceutical giant. In 2022, Dren Bio entered into an agreement with Pfizer, focusing on select oncology targets. That deal included an upfront payment of $25 million and had the potential for more than $1 billion in milestone payments, along with royalties.

Dren Bio has been making steady progress in recent years. The company raised $60 million in a series A funding round in 2020, led by SR One and Taiho Ventures. This was followed by a $65 million series B round in 2022, co-led by Aisling Capital and HBM Healthcare Investments.

Among Dren Bio's independent programs, its lead candidate DR-01 is currently in Phase II clinical trials for cytotoxic lymphomas and is being expanded to include various autoimmune indications. Another program, DR-0201, is in a Phase I study for B-cell non-Hodgkin's lymphoma.

The collaboration between Novartis and Dren Bio holds significant promise for the development of innovative cancer therapies. By leveraging Dren Bio's cutting-edge technology and Novartis' extensive experience in drug development and commercialization, the partnership aims to bring new treatment options to patients suffering from cancer.