After spending most of the year hunting for options to stay afloat, cash-strapped Portage Biotech appears to have found salvation in the potential sale of its lead asset to Immunova.
The deal will see Connecticut-based Immunova acquire iOx Therapeutics, a subsidiary of Portage that has responsibility for Portage’s liposomal iNKT agonists. These include PORT-2, Portage’s most advanced candidate that was being tested in phase 2 trials in combination with Merck & Co.’s Keytruda for melanoma and non-small cell lung cancer until the biotech halted this work last year.
The slowdown in Portage’s R&D continued this year, with the company announcing in April that after reviewing the financing market and the amount of spending necessary to advance its pipeline, it would begin a search for strategic alternatives.
At the time, Portage said it was halting enrollment in a clinical trial testing both its adenosine 2A inhibitor PORT-6 and its adenosine 2B inhibitor PORT-7. Portage bought both assets from Tarus Therapeutics less than two years ago.
In a Dec. 17 release, Portage CEO Alex Pickett said today’s deal with Immunova “underscores Portage’s commitment to unlocking the value of its assets and bringing returns to shareholders while ensuring that potentially innovative therapeutics are swiftly brought into clinical development.”
Portage has a long-standing relationship with Immunova that includes Immunova being a joint venture partner of another of Portage’s subsidiaries, Saugatuck Therapeutics.
“We are delighted to continue our collaboration with Portage and potentially add the iOx assets to our own pipeline, creating a clinical-stage biotech company focused on lipid drugs and delivery systems that empower immune cells to better fight disease,” Immunova CEO Brian Horsburgh, Ph.D., said in the release. “This acquisition represents a leap in our mission to advance innovative therapies to patients who need them most.”
This morning’s release gave no indication of how much Immunova will pay for iOx, and the companies said the transaction remains subject to negotiation. For now, Portage has entered into a letter of intent with Immunova to hammer out a way for the company to acquire the entire share capital of iOx.
With just $1.8 million left in the bank as of the end of September, Portage will likely be hoping that the final deal comes with a significant payday.