BioNTech, flush with COVID-19 cash, has struck another deal. The latest agreement will see the German biotech pay 26 million euros ($29 million) for a preclinical T-cell receptor (TCR) program from its compatriot Medigene.
Through the deal, BioNTech will take control of a preclinical program targeting PRAME, an antigen that is highly expressed in several solid tumors but largely limited to the testis in healthy tissues. The expression profile of PRAME led Medigene to genetically modify T cells to express both a TCR against the antigen and a PD1-41BB switch receptor designed to prevent inhibition in the tumor microenvironment.
BioNTech is acquiring the program as part of a deal that also gives it exclusive options on other TCRs. The partners will collaborate on the development of TCRs, with Medigene applying its discovery platform to multiple solid tumor targets selected by BioNTech under the terms of a three-year partnership.
In return, BioNTech is paying 26 million euros upfront, plus research funding for the collaboration, and committing to milestones that could top 100 million euros per program. The outlay also gives BioNTech licenses to Medigene’s PD1-41BB switch receptor and precision pairing library for use across its cell therapy programs.
Those cell therapies have played second fiddle as BioNTech’s mRNA capabilities have put it on the map, but they are a key area of focus for the biotech. Last year, BioNTech struck a deal to buy a solid tumor neoantigen TCR R&D platform and clinical manufacturing facility from Gilead’s Kite Pharma to add to its existing capabilities in Germany. The Medigene deal fits into the same strategy.
BioNTech has also used its cash reserves, which came in at 2.4 billion euros and climbing at the end of the third quarter, to enter into a collaboration with Crescendo Biologics to develop engineered cell therapies as well as mRNA-based antibodies. The string of cell therapy deals was only broken up by the takeover of antibacterial biotech PhagoMed Biopharma for 50 million euros upfront in October.
The addition of Medigene to BioNTech’s list of cell therapy deals sent investors into overdrive. Shares in Medigene soared more than 90% to around 4 euros in early trading. While Medigene’s stock has hovered around the 4-euro mark for much of the past year, it fell to below 2 euros earlier this month. The BioNTech deal marks a rare moment in the spotlight for a biotech now perhaps better known for spawning Adaptimmune and Immunocore than it is for its internal achievements.