Boehringer Ingelheim is paying up to $1.3 billion to acquire a relatively unknown immuno-oncology biotech out of La Jolla, CA.
The German drug giant said Monday morning it will buy preclinical-stage Nerio Therapeutics to get a small molecule that inhibits protein tyrosine phosphatases N1 and N2, or PTPN1 and PTPN2. The goal is to inhibit the immune checkpoints to destroy cancer cells.
AbbVie and its partner Calico are working on PTPN2 inhibitors as well, with ABBV-CLS-484 and ABBV-CLS-579 in early clinical testing.
The deal aligns with a trend of pharma companies buying nimble private startups this year, as multiple drug developers have made relatively small tuck-in acquisitions.
Immune-checkpoint inhibitors have become the backbone of many cancer regimens, with the likes of Merck’s Keytruda, Bristol Myers Squibb’s Opdivo and Roche’s Tecentriq, among others. But the class hasn’t been successful in all areas of oncology and drugmakers are looking to fill certain voids with other immune-checkpoint therapies or other modalities, like radioligand drugs and antibody-drug conjugates.
Paola Casarosa“Securing the rights to Nerio Therapeutics’ novel checkpoint inhibitors creates a broad panel of exciting new cancer treatment combination opportunities,” Paola Casarosa, member of Boehringer’s board of managing directors, said in a press release.
Nerio was funded by Avalon BioVentures, Bregua Corporation, Correlation Ventures, Alexandria Venture Investments and Viva BioInnovator.
The company was led by Sandy Madigan, an Avalon managing partner who has also led Merck-acquired Calporta and is president of Enlaza Therapeutics. Nerio last disclosed plans for a $10 million financing round in an October 2021 SEC filing.
The move follows Boehringer’s $507 million purchase of University of Basel spinout T3 Pharmaceuticals last November. The early-stage biotech is working on immunotherapies.