INDUSTRY

A key theme of the 2024 JP Morgan Healthcare Conference were pharmacompanies signaling a more conservative approach to mergers and acquistions in2024. Corporate presentations from BMS, Eli-Lilly and Novartis all mentioned thatthe companies would be focused on smaller, or “bolt-on” deals, rather than majormergers. FTC scrutiny was also cited by analysts as a potential reason for caution.

ONCOLOGY

The acquisition gives Johnson & Johnson access toAmbrx’s proprietary platform for developing nextgeneration antibody drug conjugates (ADCs). Theportfolio includes candidates like ARX517 for metastaticcastration-resistant prostate cancer, and others forbreast and renal cancer. J&J aims to leverage thetechnology to design and commercialize targetedoncology therapeutics.

ONCOLOGY

The acquisition includes Harpoon's lead candidate,HPN328, an investigational delta-like ligand 3 (DLL3)targeting T-cell engager being evaluated in certainpatients with small cell lung cancer and neuroendocrinetumors. Harpoon has developed a portfolio of T-cell engagersutilizing its proprietary “TriTAC” and “ProTriTAC”platforms. Merck aims to enhance its oncology pipelinethrough such strategic acquisitions and the transactionis expected to close in the first half of 2024.

IMMUNOTHERAPY

Calypso Biotech, a European biotech companyspecializing in IL-15 targeted therapies, has entered intoan agreement to be acquired by Novartis. As part of thedeal, Calypso's shareholders will receive $250 millionupfront, with the potential for additional developmentmilestones totaling up to $175 million. The acquisitiongrants Novartis full rights to CALY-002, Calypso's leadproduct candidate, which is an anti-IL-15 monoclonalantibody with potential applications in dermatology, GI,and rheumatology indications.

ALZHEIMER’S

Biogen discussed the progress of the Alzheimer's drug,Leqembi, at the JP Morgan Healthcare Conference.While the first Alzheimer's drug, Aduhelm, had atroubled launch and has been shelved, Leqembi hasexperienced better success with insurancereimbursement not being an issue. Despite the progress,the launch of Leqembi remains challenging due to theoverwhelming demand from the estimated 6 millionpeople living with Alzheimer's in the US. Patients arefacing difficulties in finding appointments withneurologists, contributing to a "lengthy sales cycle" oftwo to three months from the patient's request for anappointment to actually receiving Leqembi.

Amgen highlighted its potential in theobesity space at the JPMorgan HealthcareConference 2024, emphasizing its focus oninnovation. The company has two promisingpipeline agents for obesity, includingmaridebart cafraglutide in Phase IIdevelopment and AMG-786 in Phase I. Thecombination of GLP-1RA and GIPRA inmaridebart cafraglutide allows for thepossibility of monthly dosing, potentially addressing the unmet needs of improvedefficacy, speed of weight loss, and better maintenance of weight loss