KEY TAKEAWAYS
- Danish drugmaker Genmab said Wednesday that it is buying privately held U.S. biotech firm ProfoundBio for $1.8 billion in cash as it expands its pipeline of cancer treatments.
- The takeover will give Genmab access to a portfolio of next-generation antibody-drug conjugates, or ADCs, including one to treat ovarian cancer.
- Genmab’s planned purchase comes as a spate of drug giants expand their focus on boosting their portfolios of drugs to treat cancer.
Danish drugmaker Genmab A/S (GMAB) said Wednesday that it is buying privately held U.S. biotech firm ProfoundBio Inc. for $1.8 billion in cash as it expands its pipeline of cancer treatments.
The takeover will give Genmab access to a portfolio of next-generation antibody-drug conjugates, or ADCs, which employ a person’s own immune system to eliminate cancer cells, rather than using chemotherapy or radiation to do the extinguishing. Among them is one drug that’s in a Phase 2 clinical trial for ovarian cancer, Genmab said.
“The proposed acquisition of ProfoundBio firmly aligns with our long-term strategy and our ambitious 2030 vision to impact the lives of patients through innovative antibody medicines,” Genmab Chief Executive Officer (CEO) Jan van de Winkel said in a statement.
The all-cash transaction is set to close in the first half of 2024, subject to the usual regulatory approvals, the company said.
These targeted medicines have been in high demand from large pharma companies. Last November, AbbVie (ABBV) agreed to buy rival biotech firm ImmunoGen for $10.1 billion to expand its cancer drug portfolio. The acquisition gave AbbVie ImmunoGen’s flagship cancer medicine, Elahere, an ADC to treat platinum-resistant ovarian cancer (PROC).
Pharmaceutical firms have been expanding their reach on all types of cancer treatments. AstraZeneca (AZN) said last month it will acquire biotech company Fusion Pharmaceuticals (FUSN) for up to $2.4 billion to expand its pipeline of treatment for advanced prostate cancer. Novartis (NVS) in February announced plans to acquire MorphoSys (MOR) for $2.9 billion to expand its cancer treatment portfolio, and Johnson & Johnson (JNJ) last month completed its January acquisition of Ambrx Biopharma for about $2 billion to boost its oncology portfolio.
American Depositary Receipts (ADRs) of Genmab were little changed in premarket trading.