Danish biotechnology company Genmab A/S (CPH:GMAB) announced on Wednesday that it has agreed an all-cash deal to acquire ProfoundBio Inc, a clinical-stage biotechnology firm, for USD1.8bn.

Privately-owned ProfoundBio is developing next-generation antibody-drug conjugates (ADCs) and ADC technologies for the treatment of ovarian cancer and other solid tumours.

Through the acquisition Genmab gains global rights to three candidates in clinical development, including rinatabart sesutecan (Rina-S), alongside ProfoundBio's novel ADC technology platforms. Currently in Phase 2 of a Phase 1/2 clinical trial, Rina-S is next-generation Topo1 ADC targeting folate receptor alpha (FRα).

This strategic move is set to enhance Genmab's mid- to late-stage clinical pipeline while bolstering its proprietary technology platforms. With the addition of ProfoundBio's portfolio, Genmab gains access to a range of next-generation ADCs, amplifying its potential impact in cancer treatment.

By integrating ProfoundBio's ADC technology platforms with its own antibody platforms, Genmab anticipates new avenues for drug development, thus advancing cancer therapeutics. The acquisition positions Genmab to deepen its footprint in gynaecologic oncology and solid tumours, particularly with Rina-S as a potential best-in-class ADC. With Fast Track designation from the US Food and Drug Administration (FDA), Rina-S holds promise for addressing high-grade serous or endometrioid platinum-resistant ovarian cancer.

The transaction, approved unanimously by both companies' boards of directors, is slated to close in the first half of 2024, subject to customary closing conditions.