Ligand taps Apeiron for a new royalty stream

Ligand Pharmaceuticals has become a $1.5bn market cap company largely based on royalties generated by other developers, and yesterday it brought in fresh blood by purchasing Apeiron. The $100m up-front fee seems high given that Apeiron’s sole approved product is the Recordati-partnered Qarziba, marketed in the EU for the niche use of neuroblastoma. Recordati said in May that it was discussing a US filing with the FDA. The drug has a convoluted history, with Apeiron licensing it from academia in 2011, then in 2016 licensing it to EUSA Pharma, which was acquired by Recordati in 2022. While Qarziba is a sure thing for Ligand, the group will also invest up to $4m in inVIOs, into which Apeiron span off its novel projects in 2022. The inVIOs pipeline is much riskier, featuring phase 1 and preclinical modified peripheral blood mononuclear cells and TILs. A look at Ligand’s oncology portfolio mirrors this approach, with some relatively safe bets among longer shots. The group is no doubt benefiting from some companies’ desperation for cash in the current torrid financing climate; Agenus recently mortgaged various projects to Ligand to fund a phase 3 trial of its big hope, botensilimab plus balstilimab. Ligand’s oncology royalty portfolioProductCompanyDescriptionStageRoyalty rateQarzibaApeiron/RecordatiAnti-GD2 MAbMarketed for neuroblastomaUndisclosedKyprolisAmgenProteasome inhibitorMarketed for MM1.5-3%RylazeJazz PharmaceuticalsL-asparaginase chemoMarketed for ALLLow single-digitBryxta & ZybevZydus CadilaAvastin biosimilarsMarketedUndisclosedVivitraZydus CadilaHerceptin biosimilarMarketedUndisclosedLasofoxifeneSermonix PharmaceuticalsSelective oestrogen receptor modulatorPh3 for breast cancer6-10%ACR-368Acrivon (ex Lilly)CHK-1/2 inhibitorPh2 in ovarian, endometrial & urothelial cancersUndisclosedBMS-986442Agenus/Bristol Myers SquibbAnti-TIGIT x CD96 bispecificPh2 in solid tumours18.75%Botensilimab + balstilimabAgenusAnti-CTLA-4 + anti-PD-1 MAbsPh2 in CRC2.63%Ciforadenant (CPI-444)Corvus PharmaceuticalsA2AR antagonistPh2 in renal cancerMid-single digit to low-teensMB07133Xi'an XintongCytarabine prodrugPh2 in liver cancer6%MK-4830Agenus/Merck & CoAnti-ILT-4 MAbPh2 in ovarian cancer18.75%Tuparstobart (INCAGN2385)Agenus/IncyteAnti-LAG-3 MAbPh2 in H&N18.75%Verzistobart (INCAGN2390)Agenus/IncyteAnti-TIM-3 MAbPh2 in H&N18.75%ACLX-001ArcellxBCMA-targeting antigen receptor complex-T cellsPh1 in MMUndisclosedACLX-002ArcellxCD123-targeting antigen receptor complex-T cellsPh1 in AML & MDSUndisclosedAGEN2373Agenus/GileadAnti-4-1BB MAbPh1 in solid tumours18.75%ME-344MEI PharmaceuticalsMitochondrial inhibitorPh1 in CRCLow single-digitUGN-301Agenus/UroGenAnti-CTLA4 MAb (intravesical delivery)Ph1 in bladder cancer18.75%Source: OncologyPipeline & company website.