Argenx is spending $2.2 billion to absorb Forte Biosciences for its phase 2-stage vitiligo and celiac disease drug.
The prize for argenx is FB102, an anti-CD122 antibody that demonstrated success in a phase 1b study earlier this month. In that trial, Forte tied FB102 to a 29.6% improvement in a score of facial vitiligo. A readout for phase 2 celiac trial is expected later this year.
Argenx, which has previously invested in Forte, said phase 1 studies of FB102 in both indications were “key drivers” of its “decision to move from strategic investment to acquisition.”
“Beyond celiac disease and vitiligo, FB102 has the potential to address alopecia areata and additional autoimmune diseases, supporting its profile as a potential pipeline-in-a-product opportunity,” Argenx said in a July 27 release.
Argenx added that FB102 “complements argenx’s existing portfolio of antibody-based programs,” which includes the blockbuster autoimmune drug Vyvgart as well as the phase 3-stage C2-targeting antibody empasiprubart for multifocal motor neuropathy and chronic inflammatory demyelinating polyneuropathy, alongside the muscle-specific kinase-targeting adimanebart for neuromuscular disease.
“By adding a mechanism focused on pathogenic T-cell and NK-cell activity, [FB102] broaden[s] the company’s ability to pursue diseases driven by different dimensions of the immune system,” argenx explained.
The buyout ends Forte’s story on a happy note, following a tough period in 2022 when the company came under pressure from its top shareholder to liquidate in the wake of its lead atopic dermatitis asset failing a phase 2 trial.
At the time, the investment firm in question was skeptical of Forte’s plans to sink its remaining cash into FB102, but that bet now seems to have paid off.
“We are incredibly proud of what we have achieved in advancing FB102 through clinical development and firmly believe that argenx is the ideal strategic partner to unlock the full potential of this novel anti-CD122 antibody across a broad range of autoimmune diseases,” Forte CEO Paul Wagner, Ph.D., said in this morning’s release.
“By combining FB102’s promising clinical profile with argenx’s proven development expertise, global reach and commercial capabilities, we have a unique opportunity to accelerate its development and maximize its impact for patients living with vitiligo, celiac disease, alopecia areata and other autoimmune conditions,” Wagner added.
Netherlands-based Argenx is paying $77 per share of Nasdaq-listed Forte, a 40.5% increase on the biotech’s $54.78 closing price on Friday.
Argenx CEO Karen Massey put this morning’s acquisition in the context of the biopharma’s “Vision 2030” strategy to transform the treatment of severe autoimmune disease.
“The acquisition of Forte Biosciences builds on the strength of that foundation and advances our ambition to be the leading immunology innovator of the future,” Massey said in the release. “The addition of FB102 to our portfolio aligns perfectly with the argenx playbook: compelling biology, strong clinical validation and broad potential to address patient need.”