Genmab A/S and ProfoundBio, Inc. have announced a definitive agreement today for Genmab's acquisition of ProfoundBio in an all-cash deal. ProfoundBio, a privately-owned clinical-stage biotechnology company, specializes in developing next-generation ADCs and ADC technologies for treating various cancers, including ovarian cancer and other FRα-expressing solid tumors. The acquisition is valued at USD 1.8 billion in cash, subject to adjustments for ProfoundBio’s closing net debt and transaction expenses, and is aimed at enhancing Genmab’s mid- to late-stage clinical pipeline while complementing its proprietary technology platforms.

Through this acquisition, Genmab will gain global rights to ProfoundBio’s portfolio of next-generation ADCs, including Rina-S, a potential best-in-class FRα-targeted Topo1 ADC currently in Phase 2 of a Phase 1/2 clinical trial for treating ovarian cancer and other FRα-expressing solid tumors. The merger aims to leverage ProfoundBio’s innovative ADC technology platforms alongside Genmab’s proprietary antibody platforms to explore new opportunities in cancer treatment.

The addition of Rina-S is expected to expand Genmab’s presence in gynecologic oncology and solid tumors, offering potential benefits to a broader patient population than first-generation FRα-targeted ADCs. Rina-S has also received Fast Track designation from the U.S. FDA for treating patients with FRα-expressing high-grade serous or endometrioid platinum-resistant ovarian cancer.

Genmab, stated, “The proposed acquisition of ProfoundBio aligns with our long-term strategy and our vision to impact patients’ lives through innovative antibody medicines.” Baiteng Zhao, Ph.D., ProfoundBio’s co-founder, CEO, and Chairman of the Board, expressed enthusiasm, noting that the union with Genmab will expedite the development of ADC therapies.

The transaction, unanimously approved by both companies’ Boards of Directors, is expected to close in the first half of 2024, subject to customary closing conditions. Genmab anticipates an increase in operating expenses, primarily due to additional R&D investment to support ProfoundBio’s clinical programs, while revenue guidance remains unchanged. Financial advisory for Genmab is provided by Goldman Sachs International, with legal counsel from Shearman & Sterling LLP, Simmons & Simmons LLP, and Kromann Reumert.

BofA Securities, Inc., and Morgan Stanley & Co. LLC are acting as financial advisors to ProfoundBio, with legal advisory from Cooley LLP, Travers Thorp Alberga, and Jun He Law Offices.

 

Source: globenewswire.com

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