BOTHELL, Wash. and MONMOUTH JUNCTION, N.J. - Immunome, Inc. (NASDAQ: IMNM), a biotechnology firm focused on developing cancer therapies, announced today the acquisition of AL102 and its related drug candidate AL101 from Ayala Pharmaceuticals, Inc. (OTCQX: ADXS). The agreement includes a $20 million cash payment and $30 million in Immunome common stock, with an additional $37.5 million contingent on development and commercial milestones.
AL102 is a once-daily oral treatment for desmoid tumors, rare soft tissue malignancies that can cause significant pain and disability. The drug has shown promising results in clinical trials, potentially outperforming OGSIVEO™, the first FDA-approved treatment for desmoid tumors. The Phase 2 RINGSIDE study indicated high objective response rates and a median best reduction in tumor volume of 88%.
The transaction, which is subject to customary closing conditions and Ayala stockholder approval, is expected to strengthen Immunome's portfolio of targeted cancer agents. Immunome's President and CEO, Clay B. Siegall, Ph.D., expressed optimism about the rapid and profound tumor responses observed in the RINGSIDE study's Phase 2 trials. The company plans to advance AL102 towards a New Drug Application (NDA) submission, aiming to address the needs of an underserved patient population.
Ken Berlin, CEO of Ayala Pharmaceuticals, conveyed his confidence in Immunome's ability to conclude the RINGSIDE study and commercialize AL102. He also acknowledged the significant clinical data accumulated by Ayala over the years.
In the United States, up to 1,650 individuals are diagnosed with desmoid tumors annually. The FDA granted Orphan Drug Designation to AL102 in November 2023. A.G.P./Alliance Global Partners (NYSE:GLP) is advising Ayala Pharmaceuticals on the transaction.
This acquisition news is based on a press release statement.
InvestingPro Insights
As Immunome, Inc. (NASDAQ: IMNM) takes a bold step in acquiring AL102 and its related drug candidate AL101 from Ayala Pharmaceuticals, investors are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Immunome holds a market capitalization of $760.08 million, demonstrating the scale of the company within the biotechnology sector. Despite not being profitable over the last twelve months, the company has shown a remarkable gross profit margin of 154.67% during the same period, indicating its potential for future profitability.
With a high Price / Book multiple of 125.1 as of the last twelve months ending Q3 2023, the valuation reflects investor confidence in the company's assets relative to its market price. InvestingPro Tips reveal that Immunome's stock has experienced significant volatility, with a large price uptick over the last six months, culminating in a 132.19% price total return. This volatility may be attributed to market reactions to the company's strategic moves and clinical trial outcomes. Additionally, the company's liquid assets exceed short-term obligations, which is a positive sign of financial stability.
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