Genmab (GMAB) said Wednesday it would acquire privately-held clinical-stage biotechnology company ProfoundBio for $1.8 billion in all-cash deal.
ProfoundBio is headquartered in Seattle, Washington, with an R&D center of innovation in Suzhou, China, and has developed a pipeline consisting of multiple ADC drug candidates targeting solid tumors and hematological malignancies.
The development will give Genmab worldwide rights to three clinical candidates, including rinatabart sesutecan (Rina-S), plus ProfoundBio’s novel antibody-drug conjugate (ADC) technology platforms.
The acquisition is expected to enhance Genmab’s mid- to late-stage clinical pipeline, expand Genmab’s pipeline, and enhance its cancer treatment capabilities, with Rina-S as a potential best-in-class ADC targeting ovarian cancer and solid tumors.
Rina-S, which is in a Phase 2 study for ovarian cancer, is also being explored as a therapy for other solid tumors.
With the addition, Genmab’s operating expenses are projected to rise to the upper end of their guidance range of DKK 12.4–13.4 billion, primarily due to the additional R&D investment in ProfoundBio’s clinical programs. However, Genmab’s revenue guidance remains unchanged at DKK 18.7–20.5 billion.
The proposed deal is expected to close in the first half of 2024.