FRANCE — In a groundbreaking collaboration, Johnson & Johnson (J&J) has seized the opportunity to partner with Nanobiotix, the financially vulnerable French biotech company.
Under this licensing agreement, J&J will gain access to Nanobiotix’s leading product, NBTXR3, designed to amplify the effectiveness of radiotherapy in treating various tumor types, including head and neck cancer.
This bold move by J&J holds immense potential for advancing cancer treatment and revitalizing Nanobiotix’s financial stability.
The agreement encompasses the initiation of a Phase II program focusing on advanced lung cancer, with the potential for further expansion into other indications, as outlined in the official press release.
As part of the deal, Nanobiotix will receive an upfront payment of US$30 million for the NBTXR3 radioenhancer, along with milestone payments of up to US$1.8 billion.
Additionally, J&J has been granted the opportunity to acquire an equity stake in Nanobiotix, valued at a staggering US$30 million.
NBTXR3 stands as a promising candidate for cancer treatment, administered through direct injection into tumors.
This groundbreaking therapy enhances the efficacy of radiation by intensifying the destruction of cancer cells.
Nanobiotix has remained dedicated to advancing NBTXR3, with the ongoing Phase III trial, NANORAY-312, primarily focusing on head and neck cancers.
Encouragingly, studies suggest that NBTXR3’s superior cancer-killing capabilities also activate the immune system, prompting it to target tumor cells.
Although the early results of the Phase III trial appeared promising, Nanobiotix has been struggling to maintain sufficient financial resources.
In an attempt to improve its financial position, the company implemented strategic cost-saving measures, redirecting its research activities to further develop NBTXR3. However, these efforts were not sufficient to secure Nanobiotix’s stability.
This critical collaboration with J&J comes as a welcome lifeline for Nanobiotix, which recently went public in December 2020, initially raising approximately US$100 million at US$13.50 per share.
Regrettably, the company’s stock price has since plummeted to around US$5 per share as of the close of trading on Friday.
However, the announcement of the partnership with J&J sparked a remarkable 50% increase in the share price during early trading on Monday, instilling renewed hope among investors.
It is worth noting that the licensing agreement between J&J and Nanobiotix encompasses global markets, with the exception of China and other Asian countries.
For these regions, Nanobiotix has already secured a separate agreement with LianBio, strategically expanding its reach and potential.
Facing a dwindling cash reserve of only US$74 million in May 2022, Nanobiotix took crucial measures to save approximately US$16 million per year.
This financial struggle led analysts to predict that the company would run out of funds before being able to release interim results of its NANORAY-312 Phase III trial, putting Nanobiotix in a perilous financial predicament.
However, with the commencement of the licensing agreement with J&J, Nanobiotix now anticipates extending its cash runway until the first quarter of 2024, ensuring the necessary resources for continued operations.
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