Amsterdam-based immunology innovation company Argenx will acquire Santa Cruz, Calif.-based biotech company Unnatural Products in a deal valued at up to about $1.15 billion.
Under the agreement, Argenx will pay $550 million in cash upfront and up to $595 million more tied to development and regulatory milestones. It already holds a minority stake in Unnatural Products and will buy all remaining shares. Both boards approved the transaction, which is expected to close by the end of the year, subject to customary closing conditions, according to a Nov. 9 news release.
Unnatural Products built a platform that pairs parallel experimentation with machine learning to design macrocyclic peptides against hard-to-drug targets. The technology complements Argenx’s antibody engineering and could support oral and long-acting medicines for immune-mediated diseases, the company said.
Karen Massey, CEO of Argenx, said the peptide capabilities are “highly complementary to our antibody engineering.” The companies have collaborated for more than two years.
Cameron Pye, PhD, CEO and co-founder of Unnatural Products, said Argenx offers an ideal environment to accelerate the platform and bring new therapies to patients.
Following the close, the Santa Cruz site will serve as Argenx’s home for peptide discovery, with Unnatural Products’ current team continuing to lead discovery work while Argenx handles clinical development and commercialization.
