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Melbourne-based biotech Telix Pharmaceuticals (ASX: TLX) is planning to expand its suite of next-generation drug candidates through the acquisition of US-based antibody engineering company ImaginAb for US$45 million ($73 million).
The deal could be worth up to a total of US$185 million ($299 million) should ImaginAb achieve key development and commercial milestones
Telix says the acquisition gives the group access to ImaginAb’s pipeline of next-generation therapeutic candidates, a proprietary novel biologics technology platform, and a protein engineering and discovery research facility to enhance its existing innovation capabilities.
ImaginAB also gives the group access to early-stage drug candidates that “fit synergistically with Telix's therapeutics pipeline, enabling expansion to future therapy areas with unmet clinical need”.
The intellectual property of ImaginAb utilises small engineered antibody formats that enable highly specific cancer targeting, combined with fast tumour uptake and blood clearance.
Telix says this technology has the potential to be highly effective for imaging and treating tumours with a broad range of radioisotopes.
The acquisition of ImaginAb’s state-of-the-art research facility in California will provide Telix with further in-house capabilities in antibody engineering and preclinical development.
"The combination of a proprietary drug discovery platform, pipeline of promising theranostic assets and a talented team of subject matter experts will enhance Telix's research and innovation capability now and into the future,” says Telix CEO Dr Richard Valeix.
“This acquisition will enable Telix to explore new disease areas with state-of-the-art radiotherapeutic technology."
The US$45 million acquisition will be funded via US$10 million in cash and US$31 million in Telix shares, plus a deferred payment of up to US$4 million in equity at the end of a 15-month indemnity period.
If ImaginAb achieves prescribes development and commercial milestones, Telix will pay up to a total of US$185 million, a portion of which may be paid in cash or equity at Telix's election.
Royalties are also payable on net sales on a limited number of platform and early-stage products after the first four products have been developed, as well as single-digit sublicence fees, as applicable.
ImaginAb is a clinical stage biotechnology company which currently generates revenue and is developing the next generation of radiopharmaceutical and imaging agent products.
These patented products contain engineered antibodies that maintain the specificity of full-length antibodies while remaining biologically inert in the body. Used with widely available positron emission tomography and optical imaging technology, these novel targeting agents are able to bind specifically to cell surface targets.
"As the radiopharmaceutical sector gains momentum there is a significant need for targeting agents to be more selective, deliver less off-target radiation, and better match the pharmacology and radiobiology of a given radionuclide,” says Dr Anna M. Wu, co-founder and director of ImaginAb.
“The team's deep expertise in antibody engineering and the resulting development of a valuable, proprietary platform technology has led to clinical proof-of-concept. Telix is the right partner to unlock the future therapeutic potential of this platform."
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