Gilead Sciences will invest $275m for a 49.9% stake in the UofT and UCSF-linked company as part of a $1.47bn deal to potentially purchase Pionyr outright.
Pionyr Immunotherapies, a US-based immuno-oncology developer commercialising research from University of Toronto (UofT) and University of California, San Francisco (UCSF) secured a $275m commitment from biopharmaceutical firm Gilead Sciences on Tuesday.
Gilead will acquire a 49.9% in Pionyr through the deal, which forms part of a larger agreement worth up to $1.47bn that gives the corporate an exclusive option to purchase the remaining shares for another $315m.
Pionyr would then also be in line for up to $1.15bn in potential milestone payments. Gilead may exercise its option at any point up to the completion of Pionyr’s phase 1b clinical trials for its two lead assets.
The agreement is subject to customary closing conditions and is expected to close shortly.
Founded in 2015, Pionyr is working on cancer treatments that aim to promote anti-tumour immunity in patients who do not benefit from checkpoint inhibitor therapies. Its lead candidates, PY314 and PY159, are aimed at solid tumours and have shown promise in preclinical studies.
The company advances research by by Max Krummel, a professor in the Department of Pathology at UCSF and Sachdev Sidhu, a professor in the Department of Molecular Genetics and the Donnelly Center at UofT.
Pionyr plans to file investigational new drug applications for both drug candidates in the third quarter of 2020.
Gilead has committed to providing an undisclosed amount of additional funding to support the development of PY314 and PY159 as well as research and development activities.
The corporate will be able to nominate a representative to Pionyr’s board and will also join the other shareholders to nominate an independent individual to the board.
Pionyr previously raised at least $80m in financing altogether. It most recently obtained $7m in funding in March 2018, according to a regulatory filing, following a $62m series B round backed by spinout-focused investment firm Osage University Partners in December 2017.
New Enterprise Associates led the series B round, which also featured Sofinnova Ventures, Vida Ventures, Orbimed, SV Health Investors and Mission Bay Ventures.
Orbimed and SV Life Sciences co-led an $8m series A-1 round in January 2017, with participation from Osage University Partners, Mission Bay and assorted angel investors.
