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 that the 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 next generation antibody drug conjugates (ADCs). The portfolio includes candidates like ARX517 for metastaticcastration-resistant prostate cancer, and others for breast and renal cancer. J& J aims to leverage the technology to design and commercialize targeted oncology 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 pipeline through 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 into an agreement to be acquired by Novartis. As part of the deal, Calypso's shareholders will receive $250 million upfront, with the potential for additional developmentmilestones totaling up to $175 million. The acquisitiongrants Novartis full rights to CALY-002, Calypso's lead product candidate, which is an anti-IL-15 monoclonal antibody 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 has experienced 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 million people living with Alzheimer's in the US. Patients are facing difficulties in finding appointments withneurologists, contributing to a "lengthy sales cycle" of two to three months from the patient's request for anappointment to actually receiving Leqembi.

Amgen highlighted its potential in the obesity space at the JPMorgan HealthcareConference 2024, emphasizing its focus on innovation. The company has two promising pipeline agents for obesity, includingmaridebart cafraglutide in Phase II development and AMG-786 in Phase I. The combination of GLP-1RA and GIPRA inmaridebart cafraglutide allows for thepossibility of monthly dosing, potentially addressing the unmet needs of improved efficacy, speed of weight loss, and better maintenance of weight loss