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(Alliance News) - AstraZeneca PLC said it agreed to buy Neogene Therapeutics Inc for the treatment of cancer, as also noted by healthcare company Syncona Ltd on Tuesday.
The Cambridge-based pharmaceutical company said it will pay up to USD320 million on a cash and debt free basis for the acquisition. This will include an initial cash payment of USD200 million upon closing and a further USD120 million, contingent on the meeting of unspecified milestones.
Neogene is a clinical stage biotechnology company focused on the discovery, development and manufacturing of T-cell receptor therapies, or TCR-Ts, that offer a novel cell therapy approach for targeting cancer.
Susan Galbraith, AstraZeneca's executive vice president said: "This acquisition represents a unique opportunity to bring innovative science and leading experts in T-cell receptor biology and cell therapy manufacturing together with our internal oncology cell therapy team, unlocking new ways to target cancer. Neogene's leading TCR discovery capabilities and extensive manufacturing experience complement the cell therapy capability we have built over the last three years and allow us to accelerate the development of potentially curative cell therapies for the benefit of patients."
TCR-Ts are emerging as a promising therapeutic modality in cancer treatment. It can recognise intracellular targets, including cancer-specific mutations, thereby "potentially unlocking targets previously inaccessible using cell therapies", the firm added.
AstraZeneca said Neogene will operate as a wholly-owned subsidiary of AstraZeneca, with operations in Amsterdam and California.
The transaction is expected to close in the first quarter of 2023, and does not impact the firm's financial guidance for 2022.
Earlier this month, AstraZeneca won approval from the US Food & Drug Administration for its cancer drugs Imfinzi and Imjudo in combination with chemotherapy for the treatment of adults with stage four non-small cell lung cancer.
FTSE 250-listed healthcare sector investor Syncona, which holds an 8% stake in Neogene, said it will receive USD16 million from Astra's initial payment.
Separately, Syncona said its portfolio firm has extended the tender offer to buy Applied Genetic Technologies Corp to Wednesday from Monday. The sum of purchase is USD23.3 million in cash at closing, plus up to an additional USD50.0 million.
AstraZeneca shares were up 0.7% at 11,132.00 pence each on Tuesday morning in London, while Syncona shares rose 1.2% to 177.24p each.
By Xindi Wei; xindiwei@alliancenews.com
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