Janux Therapeutics could receive up to $850 million in a deal to develop a particular type of cancer-fighting T cell engager with Bristol Myers Squibb.
Janux said Thursday the two partners will work together to develop a novel “tumor-activated therapeutic” that targets an unspecified antigen expressed on several solid tumors. Bristol will hand the company in $50 million upfront and near-term milestone payments, and could add up to $800 million more if the program progresses and hits a variety of milestones. Janux would also receive tiered sales royalties if the drug reaches the market.
Janux will handle preclinical development before ceding control to Bristol Myers, which will take the lead on clinical testing and, eventually, commercialization.
At the center of the deal is a proprietary technology Janux is using to make newer T cell engagers designed to reach tumors that previous iterations have struggled with.
T cell engagers are dual-acting antibody drugs that drag immune cells to cancerous ones. While they’ve shown the ability to treat certain cancers, T cell engagers have had a hard time with solid tumors and carry side effects such as cytokine release syndrome — an overactive immune response — that can require drugmakers to lower dosing. Janux believes it can bypass these complications by “masking” its drugs so they don’t target healthy tissue, widening the range of doses the company can work with.
Six years ago, Janux’s approach attracted interest from Merck & Co., which agreed to pay the company up to about $500 million in a deal to develop T cell engagers. Since then, the company has gone public and advanced into early testing a prostate cancer drug that’s shown promise but also drawn criticism from investors, causing big fluctuations in its share price.
In a note to clients on Thursday, William Blair analyst Matt Phipps called the latest deal with Bristol Myers “further validation” that “reinforces the differentiation” of Janux’s technology, but noted how positive updates from Janux’s lead program will be “key to regaining [investor] confidence.”
Janux shares climbed about 9% in Thursday morning trading. At about $14 apiece, though, they’re still well below levels the company reached last year.
