Exicure, Inc. Partners with GPCR Therapeutics to Fuel New Growth in Biotech

Rhea-AI Summary

Exicure (XCUR) has signed an MOU with GPCR Therapeutics to acquire its US subsidiary, GPCR USA, and collaborate on drug development pipelines. The deal includes technology transfer of GPCR's CXCR4 inhibitor, currently in Phase 2 clinical trials, with an estimated market size of $1-2 billion annually. The acquisition targets multiple myeloma and acute myeloid leukemia (AML) treatments.

The company has secured total funding of $12 million ($8.7M on Dec 24, $2M on Dec 9, and $1.3M in November) with an additional expected $4M, totaling $14M. These funds will support the GPCR USA acquisition, clinical trials, and operations. GPCR Therapeutics recently presented three exhibits at the ASH conference, including Phase 2 trial interim results and preclinical data on T cell responses.

Positive

• Acquisition of GPCR USA provides access to Phase 2 clinical pipeline with $1-2B market potential
• Secured $12M in funding with additional $4M expected
• Technology transfer includes CXCR4 inhibitor patents and IP
• Access to expertise from former Bristol-Myers Squibb VP who developed Yervoy and Opdivo

Negative

• Significant capital expenditure required for acquisition and clinical trials
• Clinical trial outcomes still uncertain

Insights

Biotech Investment Analyst

This strategic acquisition marks a pivotal transformation for Exicure, positioning it to enter the lucrative GPCR therapeutics market. The deal structure is particularly compelling - acquiring GPCR USA provides immediate access to a Phase 2 clinical asset targeting a $1-2 billion annual market opportunity in multiple myeloma. The $14 million capital raise appears efficiently allocated, primarily funding the acquisition and clinical development.

The technology transfer of GPCR's CXCR4 inhibitor program significantly de-risks Exicure's clinical pipeline. CXCR4 inhibition represents a validated therapeutic approach, with Bristol Myers Squibb's Mozobil (plerixafor) already approved for stem cell mobilization. The addition of Dr. Cardarelli, who helped develop blockbuster drugs Yervoy and Opdivo, brings world-class immuno-oncology expertise that could accelerate pipeline development.

The deal's structure through an MOU suggests final terms are still being negotiated, introducing some execution risk. However, the recent $8.7 million capital raise demonstrates strong investor confidence in management's strategic vision.

Oncology Research Analyst

The acquisition provides Exicure with a promising CXCR4 inhibitor program that could address significant unmet needs in multiple myeloma and AML. The recent ASH conference presentations validate the scientific approach, particularly the potential for enhanced T cell responses that could enable in vivo CAR-T development - a holy grail in cell therapy.

GPCR's broad pipeline spanning blood cancers, solid tumors and fibrosis provides multiple shots on goal. The focus on GPCR targets is strategically sound, as these proteins remain the largest class of drug targets with proven clinical success. The combination of stem cell mobilization for multiple myeloma and potential AML applications creates a cohesive hematologic oncology franchise that could attract big pharma partnerships.

CHICAGO--(BUSINESS WIRE)-- Exicure, Inc. (Nasdaq: XCUR, “Exicure”, “the Company”), has announced the signing of a Memorandum of Understanding (MOU) with GPCR Therapeutics, Inc. (“GPCR Therapeutics”) on December 24, 2024, aimed at the acquisition of GPCR USA, a subsidiary of GPCR Therapeutics, and the technology transfer and collaborative research on GPCR Therapeutics’ ongoing drug development pipelines. Through this acquisition, Exicure plans to secure key technical personnel by purchasing all shares of GPCR USA held by GPCR Therapeutics. Following this, Exicure intends to receive technology transfer for GPCR Therapeutics’ CXCR4 inhibitor, which is currently in Phase 2 clinical trials with the FDA, along with its related patents and intellectual property (IP). By acquiring excellent research personnel and clinical pipelines, Exicure aims to advance as a clinical-stage biotech company. GPCR Therapeutics plans to successfully finalize ongoing clinical trials involving stem cell mobilizers (SCM) targeting multiple myeloma patients and prepare for clinical studies related to acute myeloid leukemia (AML). The market size for the ongoing Phase 2 trials is estimated to be around $1 billion to $2 billion annually.

Moreover, Exicure plans to engage in collaborative research and development in various forms for GPCR Therapeutics’ ongoing research in immuno-oncology, fibrosis treatments, and obesity therapies. GPCR Therapeutics, the partner with Exicure in this MOU, is a South Korean drug development company specializing in GPCR (G Protein-Coupled Receptor, “GPCR”), which represents over one-third of all drug targets. GPCR Therapeutics has secured target patents around prominent GPCRs such as CXCR4 and possesses multiple pipelines addressing blood cancers and solid tumors, genetic disorders, idiopathic pulmonary fibrosis, and obesity, including ongoing Phase 2 trials in the U.S. for multiple myeloma. Dr. Pina Cardarelli, who previously served as Vice President at Bristol-Myers Squibb, where she led the development of the first-ever immuno-oncology drugs, Yervoy (ipilimumab) and Opdivo (nivolumab), has served as the Chief Scientific Officer (CSO) of GPCR Therapeutics since 2019.

In 2021, GPCR Therapeutics established a subsidiary in the U.S. to align its R&D with global pharmaceutical standards and demands. During the American Society of Hematology (ASH) conference held from December 7-10, 2024, GPCR Therapeutics presented three exhibits detailing: (1) interim results from ongoing Phase 2 trials, (2) data on enhancing treatment efficacy for acute myeloid leukemia (AML), and (3) preclinical data on boosting T cell responses to offer various therapies, including in vivo CAR-T. Additionally, on December 24, 2024, Exicure completed the $8.7 million capital investment. Combined with the $2 million capital investment executed on December 9, 2024, the $1.3 million raised in November, and an expected additional $4 million, the Company plans to secure a total of $14 million in capital investments. The funds will primarily be used for the acquisition of GPCR USA, clinical trial costs, and its ongoing operations.

About GPCR Therapeutics, Inc.

GPCR Therapeutics, Inc., headquartered in Seoul, South Korea, is a clinical-stage international biopharmaceutical company with an innovative approach to developing therapeutics built on its proprietary GPCR data. The company’s lead small molecule asset, GPC-100/Burixafor, targets CXCR4, one of the most prevalent chemokine GPCRs overexpressed in various cancers. GPCR Therapeutics is currently conducting a Phase 2 clinical trial in the U.S. to assess the efficacy of the combination of GPC-100 and propranolol in patients with multiple myeloma. The company is also actively collaborating with domestic and international biotechnology firms. By targeting the unique pharmacology of GPCR pairs, GPCR Therapeutics aims to develop life-changing treatments for cancer and other diseases. Notably, the interaction between CXCR4 and the beta-2 adrenergic receptor (B2AR) presents an alternative signaling pathway that is synergistically dependent on the activation of both CXCR4 and B2AR.

About Exicure, Inc.

Exicure, Inc. has historically been an early-stage biotechnology company focused on developing nucleic acid therapies targeting ribonucleic acid against validated targets. Following its recent restructuring and suspension of clinical and development activities, the Company is exploring strategic alternatives to maximize stockholder value, both with respect to its historical biotechnology assets and more broadly. For further information, see www.exicuretx.com.

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. There can be no assurance regarding our ability to comply with the Panel’s decision and the applicable listing criteria by the deadline or thereafter. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual outcomes to differ materially from the outcomes expressed or implied by this report. Such risks include, among others, the possibility we will not be able to cure existing listing deficiencies, the possibility of additional deficiencies, the risk that the Company may not adequately comply with the terms of the Panel’s decision, and the risk that Nasdaq will ultimately delist the Company’s common stock. All such factors are difficult to predict and may be beyond the Company’s control. The Company undertakes no obligation and does not intend to update or revise any forward-looking statements contained herein, except as required by law or regulation. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241226044292/en/

Josh Miller

847-673-1700

media@exicuretx.com

Source: Exicure, Inc.

FAQ

What is the value of XCUR's recent capital investments in December 2024?

Exicure raised $8.7M on December 24 and $2M on December 9, 2024, following $1.3M in November, with an additional $4M expected, totaling $14M.

What is the market size for XCUR's acquired Phase 2 clinical trials?

The market size for the Phase 2 clinical trials is estimated to be between $1 billion to $2 billion annually.

What key assets will XCUR acquire through the GPCR Therapeutics deal?

XCUR will acquire GPCR USA subsidiary, CXCR4 inhibitor technology in Phase 2 trials, related patents, IP, and key technical personnel.

What therapeutic areas will XCUR target through the GPCR acquisition?

XCUR will target multiple myeloma, acute myeloid leukemia (AML), immuno-oncology, fibrosis treatments, and obesity therapies.

What data did XCUR present at the December 2024 ASH conference?

At ASH, they presented Phase 2 trial interim results, AML treatment efficacy data, and preclinical data on T cell responses including in vivo CAR-T.