Dren Bio Announces Strategic Collaboration with Novartis to Develop Novel Targeted Myeloid Engagers for Cancer

Rhea-AI Summary

Dren Bio and Novartis (NYSE: NVS) have entered into a strategic collaboration to develop novel targeted myeloid engagers for cancer. The partnership combines Dren's targeted cell depletion platform with Novartis' expertise in oncology research and development. Dren Bio will receive $150 million in upfront consideration, including a $25 million equity investment, and is eligible for up to $2.85 billion in additional milestone payments plus tiered royalties on future net sales.

The collaboration aims to discover and develop therapeutic bispecific antibodies using Dren Bio's proprietary Targeted Myeloid Engager and Phagocytosis Platform. Novartis will assume full responsibility for development, manufacturing, regulatory, and commercialization activities after clinical candidate selection. This partnership is expected to advance important new therapies for cancer patients, leveraging Novartis' oncology expertise across various modalities.

Positive

• Strategic collaboration with Novartis, a global leader in oncology
• $150 million upfront consideration, including $25 million equity investment
• Potential for up to $2.85 billion in additional milestone payments
• Eligibility for tiered royalties on future net sales of commercialized products
• Access to Novartis' expertise in oncology drug development and commercialization

Negative

• None.

Insights

Financial Analyst

The collaboration between Dren Bio and Novartis is a significant development from a financial standpoint. This partnership brings a substantial upfront payment of $150 million to Dren Bio, which will undoubtedly bolster its financial position. Additionally, the potential for up to $2.85 billion in milestone payments and tiered royalties introduces long-term revenue streams that could significantly impact Dren Bio's profitability and valuation.

For Novartis, this collaboration represents a strategic investment in a novel technology platform with considerable potential. The equity investment of $25 million in Dren Bio signifies confidence in the company's proprietary technology and its future prospects. The financial structure of this deal minimizes upfront risk for Novartis while offering substantial upside potential if the collaboration yields successful therapeutic candidates.

Retail investors should consider the potential for increased stock valuation for Dren Bio due to this influx of capital and future revenue prospects. For Novartis, the collaboration augments its oncology portfolio, potentially leading to enhanced long-term growth and market positioning within the oncology sector.

Medical Research Analyst

This partnership highlights the innovative potential of Dren Bio’s Targeted Myeloid Engager and Phagocytosis Platform. The platform's ability to deplete various disease-causing agents introduces a novel therapeutic approach in the oncology field. By leveraging Novartis’s established expertise in immuno-oncology, the collaboration aims to expedite the development and commercialization of bispecific antibody therapies.

For Dren Bio, working with a global leader like Novartis offers invaluable resources and expertise that can accelerate the development process. The strategic integration of Novartis’s advanced research capabilities could lead to the rapid identification and validation of clinical candidates, enhancing the probability of developing breakthrough therapies.

In the broader context, this collaboration can potentially lead to new therapeutic options for cancer patients, addressing unmet medical needs and improving clinical outcomes. Investors should monitor clinical progress closely, as successful trials could significantly impact both companies' market standings and patient treatment paradigms.

Market Research Analyst

From a market perspective, this collaboration is notable for several reasons. Firstly, the oncology market is highly competitive and lucrative, with a significant demand for innovative therapies. By partnering with Novartis, Dren Bio gains access to a vast network, market penetration strategies and commercialization expertise, which could catalyze its market entry and expansion.

For Novartis, this alliance augments its diverse oncology pipeline, strengthening its market leadership. The collaboration diversifies Novartis's therapeutic modalities, enhancing its competitive edge and ability to offer comprehensive cancer treatment solutions. The potential financial rewards from milestone payments and royalties also present a compelling incentive for Novartis to ensure the partnership’s success.

Retail investors should consider the potential market impact of successful bispecific antibody therapies that emerge from this collaboration. These therapies could capture significant market share, driving revenue growth for both companies. The strategic alignment of Dren Bio’s innovative platform with Novartis’s market expertise presents a synergistic opportunity that could yield substantial market advantages.

– Collaboration combines Dren’s targeted cell depletion platform with Novartis research, development and commercial expertise to advance innovative therapies for cancer –

– Dren Bio to receive total upfront consideration of $150 million and is eligible to receive milestone payments and tiered royalties –

FOSTER CITY, Calif.--(BUSINESS WIRE)-- Dren Bio, Inc. (“Dren Bio” or the “Company”), a privately held, clinical-stage biopharmaceutical company developing antibody therapeutics for cancer, autoimmune, and other serious diseases, today announced that it has entered into a strategic collaboration with Novartis Pharma AG, a subsidiary of Novartis AG (NYSE: NVS). The collaboration will focus on the discovery and development of therapeutic bispecific antibodies for cancer using Dren Bio’s proprietary Targeted Myeloid Engager and Phagocytosis Platform.

“Our agreement with Dren Bio is a promising opportunity to discover novel bispecific antibody therapies for cancer, building on our longstanding expertise in immuno-oncology science at Novartis,” said Shiva Malek, Ph.D., Global Head of Oncology for Biomedical Research at Novartis. “We’re excited to collaborate to bring forward new therapeutic options for patients living with cancer, complementing our strategic efforts across a wide range of modalities, including targeted therapies, biologics, radioligand therapies and CAR-Ts.”

“We are thrilled to establish this new collaboration with Novartis, a global leader in oncology,” said Nenad Tomasevic, Ph.D., Chief Executive Officer of Dren Bio. “Combining the proven capabilities of Novartis in oncology drug development with Dren Bio’s novel platform could enable the advancement of important new therapies for patients.”

Amit Mehta, Ph.D., Chief Operating Officer and Chief Business Officer of Dren Bio, added, “Dren Bio’s Targeted Myeloid Engager and Phagocytosis Platform is designed to deplete various disease-causing agents and has led to a rich and diverse pipeline. This collaboration will benefit from Novartis’ impressive track record of developing novel medicines and help further expand the reach of our platform.”

Under the terms of the agreement, Dren Bio will receive a total upfront consideration of $150 million from Novartis, which includes a $25 million equity investment in the Company. Dren Bio is also eligible to receive up to $2.85 billion in additional cash payments upon achieving certain preclinical, clinical, regulatory, and commercial milestones, as well as tiered royalties on future net sales of any commercialized products resulting from the collaboration. Dren Bio and Novartis will collaborate to advance selected targeted myeloid engager programs in oncology through clinical candidate selection, at which point Novartis will assume full responsibility for all remaining development, manufacturing, regulatory, and commercialization activities.

The agreement is subject to customary closing conditions including regulatory clearance.

About Dren Bio

Dren Bio is a privately held, clinical-stage biopharmaceutical company pioneering the discovery and development of novel first-in-class antibody therapeutics for the treatment of cancer, autoimmune, and other serious diseases. The Company’s lead product candidate, DR-01, is a first-in-class antibody therapeutic capable of selectively depleting terminally differentiated cytotoxic cells such as autoreactive CD8 T cells, which are known to play a pathogenic role in various cancer and autoimmune diseases. DR-01 is currently being evaluated in a Phase 2 study in patients with cytotoxic lymphomas and is expanding into various autoimmune indications. In addition to DR-01, Dren Bio’s Targeted Myeloid Engager and Phagocytosis Platform is a bispecific antibody-based technology that induces potent depletion of pathogenic cells, protein aggregates, and other disease-causing agents by engaging a novel phagocytic receptor that is selectively expressed on myeloid cells. Bispecific antibodies generated from the platform are specifically engineered to enable controlled myeloid cell activation only in the presence of the target antigen, which may result in greater therapeutic indexes and offer superior safety profiles compared to other therapeutic modalities such as T-cell engagers and Antibody Drug Conjugates (ADCs). The Company’s lead platform program, DR-0201, is capable of engaging both tissue-resident and trafficking myeloid cells to induce deep B cell depletion via targeted phagocytosis. DR-0201 has demonstrated a favorable preclinical safety profile in multiple non-human primate studies with no cytokine release syndrome or neurotoxicity observed and is currently being evaluated in a Phase 1 study in B-NHL patients. Collectively, Dren Bio’s two distinct clinical programs represent a unique opportunity to potentially achieve an immune reset in multiple autoimmune diseases, by inducing deep depletion of pathogenic B cells using DR-0201 and by selectively depleting autoreactive T cells using DR-01. The Company’s preclinical pipeline includes multiple bispecific antibodies generated from its platform focused on oncology, immunology, and neurology. For more information about Dren Bio and its current development pipeline, please visit the Company’s website at www.drenbio.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724830878/en/

Company Contact:

Jeff Macfarland

EVP, Finance

ir@drenbio.com

Source: Dren Bio, Inc.

FAQ

What is the value of the upfront payment Dren Bio will receive from Novartis (NVS)?

Dren Bio will receive a total upfront consideration of $150 million from Novartis (NVS), which includes a $25 million equity investment in the company.

What is the potential total value of the Dren Bio and Novartis (NVS) collaboration?

The collaboration has a potential total value of up to $3 billion, including the $150 million upfront payment and up to $2.85 billion in additional milestone payments, plus tiered royalties on future net sales.

What technology is Dren Bio contributing to the collaboration with Novartis (NVS)?

Dren Bio is contributing its proprietary Targeted Myeloid Engager and Phagocytosis Platform to develop therapeutic bispecific antibodies for cancer treatment.

When will Novartis (NVS) assume full responsibility for the development of candidates in this collaboration?

Novartis (NVS) will assume full responsibility for all remaining development, manufacturing, regulatory, and commercialization activities after clinical candidate selection.