Inhibrx Biosciences Inc. (NASDAQ:INBX) is attracting interest from major drugmakers for its experimental cancer therapy INBRX-106, which could be valued at over $8 billion.
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The cancer-focused biotech is evaluating a potential joint spin-off of INBRX-106 alongside another early-stage oncology asset.
Reuters on Wednesday reported that if clinical trials are successful, the combined value of the two therapies could exceed $9 billion.
INBRX-106 Gains Attention For Keytruda Combination Potential
Interest has centered on INBRX-106, which is being tested both as a standalone therapy and in combination with Merck & Co. Inc.’s (NYSE:MRK) blockbuster immunotherapy, Keytruda (pembrolizumab).
The company plans to announce interim objective response rate data from the randomized Phase 2/3 trial in head and neck squamous cell carcinoma in combination with Keytruda in the second quarter of 2026, and progression-free survival data in the fourth quarter of 2026.
In March, Merck agreed to acquire Terns Pharmaceuticals Inc. (NASDAQ:TERN), as the U.S. drugmaker accelerates efforts to offset looming revenue risks tied to its blockbuster cancer immunotherapy Keytruda.
The deal consideration is $53 per share in cash for an approximate equity value of $6.7 billion.
Early-Stage Talks With Multiple Pharma Players
Alongside Merck, other pharmaceutical companies — including Merck KGaA (OTC:MKGAF) (OTC:MKKGY), Ono Pharmaceutical Co. Ltd., Eli Lilly and Co. (NYSE:LLY), AstraZeneca Plc (NASDAQ:AZN), Pfizer Inc. (NYSE:PFE), and Johnson & Johnson (NYSE:JNJ) — are seen as potential suitors for the asset.
Reuters further added that the discussions remain in early stages, and any deal is likely months away.
Sources noted that valuation will depend heavily on upcoming clinical trial data and patient response outcomes.
On Tuesday, Inhibrx Biosciences shared updated interim data from its Phase 1/2 study of ozekibart (INBRX-109) in combination with FOLFIRI in locally advanced or metastatic, unresectable colorectal cancer.
The data showed an objective response rate of 20% and a progression-free survival of 5.5 months.
Strategic Timing As Keytruda Patent Expiry Nears
INBRX-106 may hold strategic value for Merck as it prepares for the loss of Keytruda's patent protection in 2028.
However, citing sources, Reuters reported the positioning does not necessarily give the company an edge over competing bidders.
The therapy is unlikely to reach the market before biosimilar competition begins to impact Keytruda sales.
Spin-Off Structure Could Mirror Prior Sanofi Deal
Inhibrx is considering a structure similar to its 2024 agreement with Sanofi SA (NASDAQ:SNY), in which the French drugmaker acquired INBRX-101 for $30 per share in cash, along with a $5 contingent value right tied to regulatory milestones.
INBX Stock Price Activity: Inhibrx shares were up 39.86% at $116.76 at the time of publication on Wednesday, according to Benzinga Pro data.
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