J&J bolstering ADC pipeline through $2bn Ambrx acquisition

Through the acquisition, J&J will add Ambrx’s ADC technology and a pipeline of clinical and preclinical programs. 

This includes ARX517, an ADC targeting prostate-specific membrane antigen (PSMA) for metastatic castration-resistant prostate cancer (mCRPC); ARX788, an ADC targeting human epidermal growth factor receptor 2 (HER2) for metastatic breast cancer; and ARX305, an ADC targeting CD-70 for renal cell carcinoma.

“Ambrx’s ADC technology offers unique advantages in the conjugation of stable antibodies and cytotoxic linker payloads, which results in engineered ADCs that effectively kill cancer cells and limit toxicities,” said Yusri Elsayed, global therapeutic area head, oncology, J&J Innovative Medicine.  

“The results seen to date with ARX517 in mCRPC are promising and represent a potential first- and best-in-class targeted therapy for the treatment of this aggressive disease. In addition, Ambrx’s pipeline and ADC platform present exciting future opportunities to deliver enhanced, precision biologics as we look to transform the treatment of cancer and improve patients’ lives.” 

A clinical-stage biopharmaceutical company, Ambrx sprung out from The Scripps Research Institute in 2003. Using industry-standard cell lines, the firm deals in the extended genetic code technology platform allowing synthetic amino acid (SAA) to be incorporated into proteins at any desired location. 

The agreement, announced on the first day of the JP Morgan Healthcare Conference in San Francisco, will see J&J acquire all the outstanding shares at $28.00 per share in cash and the transaction is expected to close in the first half of 2024. 

For J&J, the acquisition propels it further into the ADC space after it paid $100 million to Korea’s LegoChem Biosciences to develop LCB84, a Trop2 directed ADC, late last year. The deal also builds on J&J’s ADC partnership with Mersana Therapeutics inked in February 2022.

Moreover, the announcement is the latest example of Big Pharma’s aggressive M&A strategy within the ADC space. Pfizer acquired ADC pioneer Seagen for $43 billion in March last year (the deal closed in December), AbbVie bought ImmunoGen for $10 billion in December, and Eli Lilly agreed to buy preclinical ADC firm Mablink Bioscience in September.