Amgen to spend nearly $4 billion Acquired ChemoCentryxthe latest in a string of mergers and acquisitions by the pharma giant that will help the company expand its approach to treating autoimmune diseases and possibly cancer.
ChemoCentryx’s main asset is Tavneos, a therapeutic ANCA-associated vasculitisan autoimmune disease that damages organs, especially the kidneys. FDA approved Tavneos last fall Making the twice-daily pill the first treatment developed specifically for this rare and potentially deadly disease.
Amgen’s immunology portfolio is led by blockbuster rheumatoid arthritis drug Enbrel. Like many of the best-selling immunology drugs currently available, Enbrel is a large molecule biologic that is administered as an injection. Thousand Oaks, Calif.-based ChemoCentryx is betting on an immunology drug that is more in line with its plaque psoriasis drug Otezla, a small molecule that comes in a more patient-friendly pill form. ChemoCentryx brings to Amgen a company entirely focused on developing small molecule medicines that are an alternative to injectable or infusion biologics.
On Thursday’s conference call, Amgen CEO Bob Bradway focused his ChemoCentryx comments on the commercialization opportunity for Tavneos. Patients with ANCA-related vasculitis need the drug because older drugs used to treat the disease, mostly immunosuppressants and steroids, have severe side effects, he said. As part of Amgen, the drug could leverage the pharma giant’s connections with prescribing physicians.
“Decades of leadership in immunology and nephrology will allow us to add value to the launch of Tavneos to reach more patients faster than otherwise,” Bradway said.
In ANCA-associated vasculitis, white blood cells called neutrophils attack blood vessels and cause inflammation. The disease develops when a part of the immune system called the complement system becomes dysregulated. Tavneos is a small molecule designed to block the pro-inflammatory components of the complement system found on neutrophils.In its 2021 Annual Report, ChemoCentryx said its drug appears to offer a more targeted approach than Soliris and Ultomiris, both AstraZeneca’s blockbuster antibody drugs that address the complement system in treating other diseases. This targeted effect can reduce the risk of infection, although ChemoCentryx also noted that serious infections have been reported in patients receiving its drug.
If Amgen plans to use the ChemoCentryx drug to challenge AstraZeneca’s product, executives aren’t so forthright. But Tavneos offers a “pipe in the product” opportunity. In addition to its approval for ANCA-associated vasculitis, Mountain View, Calif.-based ChemoCentryx has mid-stage approval for the drug in hidradenitis suppurativa, a chronic inflammatory skin disease for which current treatments include biologics. test. Preliminary data from the phase 2 trial showed the drug did not meet the primary goal of the entire study population, although the company said it had positive results in some patients. ChemoCentryx said in its financial report that the initiation of a Phase 3 study in patients with severe hidradenitis suppurativa is contingent on feedback from the FDA. The company also has Phase 2 data for Tavneos in complement 3 glomerulopathy, a rare kidney disease for which there is no FDA-approved therapy.
Lupus nephritis, an autoimmune kidney disease for which current treatment options include biological drugs, is another disease target for Tavneos. ChemoCentryx has said it expects to begin clinical trials for the indication in the second half of this year. CCX507, an oral drug candidate for the treatment of inflammatory bowel disease, is preparing for Phase 2 testing.
ChemoCentryx hopes its small-molecule approach to traditional biological targets will also work in cancer. Some of the best-selling cancer immunotherapies belong to a class of drugs called checkpoint inhibitors. These antibody drugs block proteins that cancers use to evade the immune system. ChemoCentryx’s CCX559 is an oral small molecule targeting checkpoint proteins. The drug could replace currently available checkpoint inhibitors, macromolecular drugs that are administered as an infusion. The CCX559 is in Phase 1 testing.
David Reese, executive vice president of research and development at Amgen, acknowledged ChemoCentryx’s clinical studies of Tavneos in other indications. Amgen and ChemoCentryx will study the data to develop the best way to address diseases for which there are few effective treatments, he said. Amgen executives did not discuss other drug candidates in the ChemoCentryx pipeline.
Amgen has been an active acquirer of late. Otezla was acquired from Bristol Myers Squibb for $13.4 billion in 2019 in a deal designed to satisfy Federal Trade Commission requirements for BMS’ acquisition of Celgene.Last year, Amgen reached Five Prime Therapeutics to acquire cancer drug biotech company for $1.9 billion. A few months later, Amgen agreed to pay A total of $400 million for worldwide rights to Kyowa Kirwin antibodies (excluding Japan) In development for atopic dermatitis. in June, Amgen buys antibody drug developer Teneobio for $900 million.
For ChemoCentryx, Amgen paid $52 in cash per share of the biotech, a more than 115% premium to the stock’s Wednesday closing price. The deal valued ChemoCentryx at $3.7 billion.
The boards of both companies have approved the deal, which the companies expect to close in the fourth quarter of this year. The merger agreement prohibits ChemoCentryx from soliciting other bids or even negotiating another proposal with other parties. Under the merger agreement, ChemoCentryx must pay a termination fee of $119 million if it violates the rule, or if an unsolicited better offer occurs and the biotech terminates the deal with Amgen.
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