Genmab Acquires ProfoundBio for $1.8 Billion to Enhance Oncology Offerings
Danish biotechnology company Genmab A/S has agreed to acquire Seattle-based ProfoundBio, Inc. for $1.8 billion in an all-cash transaction. This strategic move is expected to bolster Genmab's oncology portfolio by providing it with worldwide rights to ProfoundBio's advanced antibody-drug conjugate (ADC) technologies and a suite of candidates in clinical development. The lead candidate in ProfoundBio's pipeline is rinatabart sesutecan (Rina-S), a clinical-stage ADC targeting folate receptor alpha (FRα) for the treatment of ovarian cancer and other FRα-expressing solid tumors.
The acquisition, which has been unanimously approved by the boards of both companies, is set to expand Genmab's mid-to-late-stage clinical pipeline and is aligned with its long-term strategy to impact patient lives through innovative antibody medicines. Genmab's operating expenses are anticipated to increase to the upper end of their projected range, primarily due to additional R&D investment in ProfoundBio's clinical programs.
Pending regulatory approval and other customary closing conditions, the deal is expected to close in the first half of 2024. Genmab's advisors for the transaction include Goldman Sachs as the sole financial advisor, with BofA Securities, Morgan Stanley, Cooley, Travers Thorp Alberga, and Jun He Law Offices providing legal counsel. The acquisition is poised to deepen Genmab's presence in the gynecologic oncology space and establish a solid foundation in the treatment of solid tumors.
