GSK inks deal with Immatics that could exceed worth of $1.1 billion

Privately-held German immune-oncology firm Immatics Biotechnologies has entered into a strategic collaboration agreement with UK pharma major GlaxoSmithKline (LSE: GSK) to develop novel adoptive cell therapies targeting multiple cancer indications.

The companies will collaborate on the identification, research and development of next-generation T-Cell receptor (TCR) therapeutics with a focus on solid tumors. The parties will initially develop autologous T-cell therapies with the option to add allogeneic cell therapies using Immatics’ ACTallo approach. The companies intend to utilize proprietary TCRs identified by Immatics’ XCEPTOR TCR discovery platform and directed against two proprietary targets, which were discovered and validated by Immatics’ XPRESIDENT technology.

$50 million upfront payment

Under the terms of the agreement, Immatics will get an upfront payment of 45 million euros (~$50 million) for two initial programs and is eligible to receive over $550 million in development, regulatory and commercial milestone payments for each product as well as additional royalty payments. GSK obtains an option to select additional target programs to include in the collaboration. For each additional program, Immatics is entitled to option, milestone and royalty payments.

Just last August, Immatics inked an equally lucrative deal with Celgene, now part of Bristol-Myers Squibb (NYSE: BMY).  It also has license agreements with Danish biotech firm Genmab (OMX: GEN) and US biotech major Amgen (Nasdaq: AMGN).

Under the deal with GSK, Immatics will have primary responsibility for the development and validation of the TCR Therapeutics up to designation of a clinical candidate. GSK will assume sole responsibility for further worldwide development, manufacturing and commercialization of the TCR Therapeutics with the possibility for Immatics to co-develop one or more TCR Therapeutics including the conduct of the first-in-human clinical trial upon GSK’s request.

“We are delighted to enter into this strategic collaboration with GSK – a partner who is already committed to adoptive cell therapies and TCR-T approaches,” said Harpreet Singh, chief executive of Immatics, who was promoted to the CEO role last July.