Ken Song has done it again.
The biopharma veteran’s all-out effort to prove T cell engagers’ potential in autoimmune diseases is getting picked up by one of Europe’s oldest pharma companies.
UCB is paying $2 billion in cash to acquire Candid Therapeutics, the companies
announced
Sunday afternoon. The Belgian pharma could pay up to another $200 million down the road if the San Diego and Shanghai biotech hits certain milestones.
In March, Candid announced plans to go public this summer via a reverse merger with Rallybio, but after that announcement, the company began getting unsolicited approaches from pharma, Song said in a Sunday phone interview with
Endpoints News
.
“There is an increasing appreciation broadly across the industry on the benefit of T cell engagers for B cell depletion in a variety of autoimmune diseases,” Candid’s CEO said. “There was interest that emerged relatively recently from several companies in what we’re doing.”
This marks UCB’s second biotech acquisition in as many months. It is buying fellow California startup
Neurona Therapeutics
and its epilepsy cell therapy for $650 million upfront. Drugmakers have signed at least 30 acquisitions so far this year, according to an Endpoints tally, as they look to refuel their pipelines.
Song noted UCB’s long history, dating to the 1920s, and its “focused” approach to drug R&D as appealing factors.
“We have a lot of confidence in UCB’s ability to not only take these programs forward, but we also do believe that our programs will get the proper attention and investment,” Song said. He noted that unlike large pharmaceutical companies, UCB doesn’t tend to do “portfolio prioritizations or moves that can change from year to year.”
UCB CEO Jean-Christophe Tellier called it a “pivotal moment” for his company.
“This exemplifies the next wave of therapies to treat immune-mediated diseases and reflects our commitment to setting new standards to achieve immune reset,” Tellier said in a press release.
UCB also did a T cell engager deal with Chinese biotech
Antengene
earlier this spring. The Candid deal “builds on” the Antengene pact and “reflects a platform-driven strategy in next-generation immunology,” UCB said.
Song set up Candid in 2024 after selling his prior bet, the radiopharmaceutical company RayzeBio, to Bristol Myers Squibb for $4.1 billion. Candid’s speed somewhat mirrored that of Rayze, which had gone from
Series A to IPO
in three years and then an M&A exit just months later.
Candid kickstarted
with $370 million
and a pipeline of T cell engagers. Then, it quickly inked a series of
licensing
and
R&D collaborations
, and opened a site in China to speed up early clinical studies.
Two months ago, it
planned to go public
by taking the Nasdaq spot of Rallybio and rebranding to the ticker “CDRX.” That reverse merger would have given Candid
$505 million
in concurrent financing. With the cancellation of the merger, Candid is “required to pay Rallybio a termination fee of $50 million,” a Rallybio spokesperson told Endpoints via email.
Song said Candid did not have any bids from UCB prior to that announcement.
“I was a bit surprised,” Song said. “We got this unsolicited interest and then that led toward a broader evaluation.”
Candid had “interest from multiple companies,” but Song declined to disclose whether his biotech got other formal offers.
T cell engagers have taken off as a popular modality in the autoimmune field after proving themselves in oncology.
In a prior interview with Endpoints, Song made the bold claim that Candid would “prove or disprove, for the entire industry, T cell engagers for autoimmune diseases.” He said they had “15 to 20 shots on goal.” Candid would just have to “make one of them score.”
Candid’s lead asset is a BCMAxCD3 T cell engager known as
cizutamig
. It has also been cooking up a CD20xCD3 asset known as
CND261
and a CD19xCD20-targeted medicine called CND319.
In the span of about 20 months, the biotech startup had already initiated 14 clinical trials across the US and China,
according to
board member Aaron Royston, managing partner at Candid investor venBio.
Asked whether UCB would retain Candid’s team in Shanghai, Song declined to comment, saying the companies “haven’t had any further discussions in terms of the integration planning.”
“But I do think UCB was attracted not just to our assets, but to everything that we have been able to do as a company,” Song said.
Editor’s note: This story has been updated to include comment from a Rallybio spokesperson.