In a new deal valued at up to $1.27bn, AstraZeneca (AZ) has acquired biotechnology firm TeneoTwo.
The agreement includes the acquisition of TeneoTwo’s phase 1 clinical-stage CD19/CD3 T-cell engager, TNB-486, which is currently being assessed in the treatment of relapsed and refractory B-cell non-Hodgkin lymphoma.
By taking on TNB-486, AZ will reinforce its haematological cancer pipeline. To that end, the company aims to accelerate R&D surrounding this potential new medicine for B-cell haematologic malignancies, such as diffuse large B-cell lymphoma and follicular lymphoma.
Following AZ’s success with Calquence (acalabrutinib) – a next-generation selective Bruton’s tyrosine kinase (BTK) inhibitor – TNB-486 will further diversify the company’s haematology pipeline that have the potential capacity to address broad spectrum of blood cancers.
TNB-486 is in a class of therapeutic antibodies referred to as T-cell engagers, which show promise as a therapeutic approach in tackling haematologic malignancies and solid tumours. T-cell engagers are bispecific molecules that are developed to redirect the immune system’s T-cells to identify and destroy cancer cells.
It has been agreed between the companies that AZ will acquire all outstanding equity of TeneoTwo in exchange for an upfront payment of $100m on completion of the deal.
According to the terms of the deal, AZ will make additional contingent R&D-related milestone payments of up to $805m, followed by additional contingent commercial-related milestone payments of up to $360m to TeneoTwo’s equity holders.
The deal is expected to be finalised in the third quarter of 2022, subject to customary closing conditions and regulatory clearances.
Anas Younes, senior vice president haematology R&D, AZ said: “By redirecting the body’s natural immune response to target B-cell malignancies, TNB-486 alone or in combination with CD20-targeted therapy could potentially deepen clinical responses and improve patient outcomes.
“We believe this innovative molecule, which was designed to optimise the therapeutic window of T-cell activation, will enable us to explore novel combinations that have the potential to become new standards of care in this setting.”