INSIDE THE DEAL
16 November 2020 By Allie Nawrat
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Hans Schambye, CEO, Galecto
Image: Galecto
Fusion and AstraZeneca are partnering to develop next-generation radiopharmaceuticals for cancer. Under the terms of the agreement, they will work to combine alpha isotopes with AstraZeneca antibodies to create targeted alpha therapies, as well as linking up with other immunotherapy approaches to improve cancer care, particularly for solid tumours. Pharmaceuticals is collaborating with Anglo-Swedish pharma giant AstraZeneca to develop next-generation radiopharmaceuticals, known as targeted alpha therapies (TATs), to treat cancer.
For this partnership, “Fusion will bring the radioisotope and linker technology, as well as expertise in radiopharmaceutical development, manufacturing and supply chain,” explains the company’s CEO, John Valliant. Fusion’s Fast-Clear linker technology allows for isotopes to be delivered to tumour cells and also be rapidly cleared from the body.
Valliant adds: “AstraZeneca will bring…their industry-leading antibody portfolio and oncology expertise.”
AstraZeneca Oncology research and development senior vice-president and head of research and early development Susan Galbraith noted in a release: “With this collaboration, we will seek to identify synergies between our pipelines to unlock the full potential of our medicines, and also to develop novel targeted radiopharmaceuticals.
“We believe that the Fusion team’s expertise in next-generation radiopharmaceuticals complements AstraZeneca’s extensive research and development portfolio.”
According to the terms of the agreement, Fusion and AstraZeneca will jointly discover, develop and have the option to co-commercialise the novel TATs in the US. Fusion will receive an upfront payment from AstraZeneca and will also be eligible for future development milestone and other payments.
Although clinical costs will be shared, Fusion will be responsible for pre-clinical development, while AstraZeneca will take over for the clinical stages of development.
Radiotherapy has been the standard of care for many cancers for decades. However, Fusion aims to take this principle and make it more targeted, with radiopharmaceuticals that precisely deliver radiation to cancer cells, explains Vaillant.
Focused on alpha-emitting radiopharmaceuticals, Fusion used its proprietary Fast-Clear Linker technology to combine alpha radiation with targeting molecules, such as antibodies. These TATs “cause substantial physical damage to cancer cells, including multiple double-stranded DNA breaks that are lethal to the tumour”, Valliant notes.
TATs also have multiple mechanisms of action that “may give them the ability to treat hard-to-treat solid tumours”. Further to this, they also cause “the release of tumour-associated antigens and concomitant maturation of antigen-presenting cells and proliferated T cells at tumour sites, leading to an enhanced immune response to go along with the physical damage by the alpha radiation”, adds Valliant.
Valliant explains that another element of the multi-pronged mechanism of action of the company’s TATs is that they have “the potential to work synergistically with other approved oncology therapies”.
He continues that preclinical studies have suggested that combining TATs with checkpoint inhibitors might cause a “robust therapeutic effect in solid tumours compared to checkpoint inhibitor monotherapies”. There is also promise of combining TATs with DNA damage response inhibitors.
Given these promising potential combinations, in addition to developing novel TATs by linking AstraZeneca antibodies with alpha-emitting isotope Actinium225, Fusion and AstraZeneca are also working on combining the former’s lead TAT candidate FPI-1434 with other oncology therapeutics in the latter’s portfolio.
Valliant notes: “Together we will explore new combination therapies, including evaluating the synergy of the DNA-damaging and neoantigen-creating power of TATs with DNA damage repair inhibitors and immuno-oncology agents to create new and potent cancer therapies and treatment paradigms.”
For the latest pharmaceutical deals analysis, visit GlobalData's Pharmaceuticals Intelligence Centre.
DEALS ANALYSIS
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Pharma industry deals, as captured by GlobalData’s Pharmaceuticals Intelligence Centre, are up year-on-year (YoY) across all regions.
North America is leading in terms of deal value, but recorded the lowest YoY growth in deals volume at 4%. Asia-Pacific, ranking third in terms of deal value, has seen the biggest YoY change, with deal volumes increasing by 30%.
The volume of deals recorded by GlobalData also increased YoY in South and Central America (21%), Europe (16%) and Middle East and Africa (15%).
| Deal type | Total deal value (US$m) | Total deal count | YoY change (volume) |
| Partnership | 459528 | 17704 | 0 |
| Venture Financing | 211013 | 17549 | 41 |
| Contract Service Agreement | 1849 | 16956 | 665 |
| Equity Offering | 851620 | 15788 | 142 |
| Licensing Agreement | 679040 | 13308 | 52 |
| Grant | 6529 | 12600 | -34 |
| Acquisition | 3593731 | 10564 | -46 |
| Debt Offering | 1753561 | 7809 | 28 |
| Asset Transaction | 424069 | 6011 | -54 |
| Private Equity | 498132 | 244 | -22 |
| Merger | 167235 | 660 | 283 |
A breakdown of deals by type and volume shows a 283% growth in mergers YoY, while acquisitions are down 46%, partnerships held steady with 0% change YoY and asset transactions are down -54%. Financing deals have increased across some types, with venture financing up 41% YoY, equity offerings up 142% and debt offerings up 28%.
Private equity, however, has seen a drop of -22% in number of deals YoY, while the number of grants recorded is down -34%. The number of contract service agreements recorded by GlobalData is up 665% year-on-year.
The most notable development apparent in GlobalData’s analysis of pharma industry deals by therapy area is the increase of deals in the field of infectious diseases. After remaining relatively steady over the past ten years, the number of recorded deals in infectious diseases increased significantly in 2020 to date, most likely due to the impact of the Covid-19 pandemic on activity in the sector.
Note: All numbers as of 16 November 2020. Deals captured by GlobalData cover M&As, strategic alliances, various types of financing and contract service agreements.
For more insight and data, visit GlobalData's Pharmaceuticals Intelligence Centre.
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