AUSTRALIA – Telix Pharmaceuticals, a global biopharmaceutical company headquartered in Australia, has agreed to acquire US-based QSAM Biosciences for US$123.1 million.
The acquisition, formalized with the signing of a conditional non-binding term sheet, is set to broaden Telix’s portfolio in the field of oncology therapies.
A key component of the deal involves Telix acquiring QSAM’s lead investigational drug, Samarium-153-DOTMP (¹⁵³Sm-DOTMP), a cutting-edge bone-seeking targeted radiopharmaceutical candidate.
This acquisition marks Telix’s entry into the realm of therapeutic radiopharmaceuticals for primary and metastatic bone cancer, an area of critical need within the oncology landscape.
Under the terms of the agreement, Telix will make an upfront payment of US$33.1 million (A$50.8 million), disbursed as 4,369,914 ordinary shares of Telix.
Additionally, contingent value rights have been included in the deal, entailing potential additional payments of up to US$90 million upon the achievement of specific clinical and commercial milestones which have the leeway to be fulfilled either through cash or shares.
QSAM Biosciences specializes in the development of therapeutic radiopharmaceuticals, with a particular focus on addressing primary and metastatic bone cancer.
Its lead candidate, ¹⁵³Sm-DOTMP, demonstrates promise in pain management and therapy for bone metastases and osteosarcoma, including applications in pediatric patients.
The drug has exhibited favorable safety, efficacy, and commercial potential in early trials, showcasing an improved safety profile, enhanced delivery mechanisms, and optimized production processes.
Recent data has revealed that the ¹⁵³Sm-DOTMP is efficient in managing pain associated with prostate cancer bone metastases and will essentially help in addressing a significant medical need that are until now unmet.
Telix furtgher revealed that it envisioned broader applications for the drug beyond prostate cancer, including metastatic lung and breast cancer, with a primary emphasis on palliative care and enhancing quality of life for patients.
Furthermore, ¹⁵³Sm-DOTMP has received orphan drug and rare pediatric disease designations from the US Food and Drug Administration (FDA) for the treatment of osteosarcoma, underscoring its potential therapeutic value.
Dr. Christian Behrenbruch, Managing Director and Group CEO of Telix Pharmaceuticals, emphasized the strategic importance of the addition of QSAM to Telix’s pipeline and said there was a likelihood Samarium which is being utilized as a radionuclide to treat bone metastases.
“The acquisition of QSAM provides Telix with an additional near-term therapeutic pipeline asset, further differentiating our innovation position in radiopharmaceuticals and building depth in Telix’s key disease focus areas of urological and musculoskeletal oncology.”
Christian also expressed confidence in the rapid pathway to commercialization that has been facilitated by Telix’s expertise in pharmacy-based cold-kit distribution.
“Samarium is a highly optimal radionuclide for treating bone metastases, and the combination of orphan drug designation and rare paediatric disease designation status with Telix’s demonstrated experience in pharmacy-based cold-kit distribution has strong potential for a rapid pathway to commercialisation of this asset.” He added.