AbbVie is diversifying its pipeline into oncology, paying $650 million for a clinical-stage drug that pursues two cancer-fighting goals. It’s the latest in a series of industry deals for assets in this emerging drug class, and like the others, AbbVie’s new big molecule comes from China.
The drug, RC148, was developed by RemeGen, based in Yantai, China. The terms of the deal announced Monday give AbbVie global rights to the RC148, excluding Greater China, where RemeGen retains the rights.
The target proteins of RC148 are PD-1 in immune cells and VEGF in cancer cells. PD-1 is the so-called checkpoint protein that prevents immune cells from recognizing cancer cells; Blocking it allows the immune system to respond to tumors. VEGF promotes the formation of blood vessels that fuel tumor growth. RC148 is a bispecific antibody designed to block PD-1 and VEGF simultaneously.
Beyond enlisting the immune system in the fight against cancer, the dual mechanism of a bispecific antibody is expected to overcome the ways in which tumors become resistant to drugs. This approach also makes the tumor microenvironment, the ecosystem surrounding a tumor, more favorable for the class of anticancer drugs called antibody-drug conjugates (ADCs). For that reason, companies are exploring combinations of PD-1 and VEGF bispecifics with ADCs.
AbbVie and Remegen said early clinical trials of RC148 “have shown favorable initial antitumor activity” in combination with an ADC. Additionally, AbbVie also sees opportunities to use the RemeGen drug as part of combinations with the North Chicago pharmaceutical company’s own ADCs, including the experimental drug telisotuzumab adizutecan, in solid tumors, such as non-small cell lung cancer and colorectal cancer.
“By combining the immune checkpoint inhibition and antiangiogenic activity of RC148 along with the targeted cytotoxic activity of ADCs, we have the potential to identify meaningful options for patients in a variety of solid tumors,” Daejin Abidoye, president, therapeutic area head of oncology, solid tumors and hematology, AbbVie, said in a prepared statement.
AbbVie may have more to say about the drug and its cancer strategy later this week. The company plans to hold a fireside chat Wednesday morning during JP Morgan’s annual healthcare conference in San Francisco.
Companies with PD(L)1/VEGF bispecific antibodies from China include Summit Therapeutics, Merck, BioNTech and Pfizer. Crescent Biopharma has a US PD-1/VEGF bispecific antibody; Last month, the company reached an agreement with Kelun Biotech to secure the rights to that China-based biotech’s ADC for development as a monotherapy and as part of drug combinations.
Instil Bio was developing a PD-L1/VEGF bispecific under license from a China-based company, but last week announced it would discontinue development and cancel the license. Instil did not give a reason, but the company may have concluded that the asset was no longer competitive in this increasingly competitive field.
The financial community is taking note of the growing competition for bispecific antibodies. In a note to investors, Leerink Partners analyst David Risinger said Remegen’s RC148 has the potential to become a blockbuster product for AbbVie, but the PD-1/VEGF bispecific antibody landscape is crowded. Data showing the differentiation could come soon. The drug Remegen is currently being evaluated in three Phase 2 trials in China in breast cancer, among other types of solid tumors. All three studies are expected to generate data this year, Risinger said.
Beyond the upfront payment, terms of the deal announced Monday hold AbbVie responsible for paying up to $4.95 billion in milestone payments. AbbVie will also be responsible for paying royalties on sales of RC148, outside of Greater China, if the drug reaches the market.
AbbVie expands manufacturing capabilities
In other AbbVie news, the pharmaceutical company announced Monday that it has reached an agreement to acquire a manufacturing facility from West Pharmaceutical Services in Tempe, Arizona. AbbVie said this transaction is part of a broader $10 billion capital commitment to expand its pharmaceutical manufacturing in the United States.
For the Tempe site, AbbVie said it plans to hire about 200 employees and invest more than $175 million. Beyond paying for the acquisition, that sum will go toward modernizing and integrating the site into AbbVie’s global manufacturing network. AbbVie did not say which drugs it plans to manufacture in Tempe other than to say that the transaction includes the transfer of multiple production lines and in-body injector technology to support the production of AbbVie’s current and next-generation drugs in immunology and neuroscience.
Photo: Smith Collection/Gado/Getty Images