Kumquat Biosciences, Inc.

CMS' estimated Leqembi costs, Takeda's immuno-oncology deal with Kumquat Biosciences, and Fujifilm Diosynth Biotechnologies' layoff round made our news this week. Medicare's spending projection on the Alzheimer's drug Leqembi is way higher than Eisai's own estimates. Takeda signed an immuno-oncology deal potentially worth more than $1.2 billion. Fujifilm Diosynth Biotechnologies is restructuring its small-scale business unit. And more. 1. Report: Spending on Leqembi could hit $3.5B next year, CMS says The Centers for Medicare & Medicaid Services estimated that Eisai and Biogen’s Leqembi would cost Medicare about $3.5 billion next year, according to a document summarizing a February stakeholder call that was first obtained by Stat. The number was much higher than Eisai's own projection of about $2 billion in revenue for 2026. 2. Takeda inks sweet $1.2B-plus deal with Kumquat for immuno-oncology program Takeda has signed a deal for an immuno-oncology small-molecule inhibitor from Kumquat Biosciences. Kumquat can give Takeda global development and commercialization rights after phase 1. The pact includes $130 million in near-term payments, more than $1.2 billion in future milestones, plus tiered sales-based royalties. 3. CDMO Fujifilm Diosynth's restructuring plan may leave up to 240 staffers out of work Fujifilm Diosynth Biotechnologies is laying off up to 240 workers as part of a restructuring of its small-scale business unit. The Japanese CDMO cited “the short-term impacts of reduced venture capital investment into early-stage research projects,” especially in the cell and gene therapy space, as the reason. The company’s sites in Texas, North Carolina, Massachusetts and England may be affected. 4. Shinobi strikes deal with electronics powerhouse Panasonic to create new cell therapy manufacturing platform Shinobi Therapeutics has signed a collaboration pact with Panasonic and Kyoto University to develop a new manufacturing platform to crank out induced pluripotent stem cell-based T-cell therapies more efficiently at lower costs. Panasonic is responsible for creating the closed-system manufacturing device, and Shinobi will contribute its iPSC knowledge. The first prototype is expected next April. 5. 89bio lines up China CDMO to build API plant for commercial production of MASH candidate San Francisco-based 89bio has struck a deal asking China’s BiBo Biopharma Engineering to help it build a plant that will produce the bulk active ingredient for the U.S. biotech’s metabolic dysfunction-associated steatohepatitis (MASH) candidate pegozafermin. 89bio will pay the Chinese CDMO $135 million in several tranches. BiBo has two facilities in China that produce more than 20 commercial products. 6. Eisai on your hi-fi: Leqembi maker supports creation of Alzheimer's podcast miniseries Eisai is funding a podcast miniseries called “Rethinking Alzheimer’s Disease.” The unbranded program was created by Mission Based Media and is focused on the steps between a patient developing symptoms and getting diagnosed, as well the future of Alzheimer’s diagnosis and therapy. Other News of Note: 7. FDA slams 3 Indian drugmakers in flurry of recent Form 483s 8. Ferring taps CDMO SK pharmteco to boost long-term supply of gene therapy Adstiladrin 9. SCG teams with A*STAR on iPSC manufacturing technology for cell therapies (release)

Takeda has entered into a partnership with California-based Kumquat Biosciences to develop and market a novel immuno-oncology small molecule inhibitor as a mono- and/or combination-therapy. Under the terms of the partnership, Takeda will lead the later stages of development and commercialization and Kumquat will be responsible for initial research and phase 1 clinical trials. Takeda has obtained exclusive global rights to the drug, with Kumquat receiving up to $130 million in near-term payments and potentially more than $1.2 billion in milestone payments and royalties on future sales. Kumquat CEO Yi Liu expressed excitement about the collaboration's potential to speed up the drug's clinical development and extend its reach to help more cancer patients. Back in 2021 , Kumquat inked a potential $2 billionmulti-year collaboration with Eli Lilly focused on the discovery, development and commercializationof potential novel small molecules that stimulate tumor-specific immune responses. Founded in 2019, Kumquat has secured over $100 million in funding from investors including OrbiMed, Sequoia Capital China, EcoR1, Lilly Asia Ventures and Roche Venture Fund.

Oncology biotech Kumquat Biosciences is ripening its partnership portfolio with a new Takeda pact. Takeda is offering Kumquat Biosciences the chance to make more than $1.2 billion biobucks in a new exclusive pact that centers around an unnamed immuno-oncology small-molecule inhibitor. Kumquat, after running phase 1 trial activities, can grant Takeda global licensing rights to develop and commercialize the asset, according to agreement terms shared April 16. Subject to Kumquat's option, Big Pharma Takeda will then take on responsibility for all development and commercialization activities following phase 1. The selected program can be developed as a monotherapy, combo therapy or both, according to the April 16 release. In exchange, Kumquat is set to make up to $130 million in near-term payments, with the additional chance to grab more than $1.2 billion in future clinical, regulatory and commercial milestones, plus tiered royalties on top of that. “This collaboration aligns with our mission to advance a cutting-edge pipeline focused on maximizing the benefit of the immune system to address the continued unmet needs of cancer patients,” P.K. Morrow, Takeda’s newly tapped lead of the oncology therapeutic area unit, said in the release. Morrow left CRISPR Therapeutics at the beginning of the year for the new role. "We look forward to working with Kumquat to accelerate the development of this exciting asset." Kumquat is a private oncology biotech launched in 2019 that has shared little publicly about its anti-cancer small-molecule platform. The California company snagged a partnership with Eli Lilly back in 2021 with $70 million upfront and the chance to make more than $2 billion biobucks. The collaboration targets small molecules that stimulate tumor-specific immune responses. The biotech has also pulled in financial backing from another Big Pharma, securing early funding from Roche’s venture fund.