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Morphimmune, a biotech company led by former Seagen CEO Clay Siegall, is merging with a public biotech company, Immunome, in a deal boosted with $125 million from private investors.
Siegall will serve as CEO, president and chairman of the board of directors of the merged company, which will be called Immunome and will be headquartered in Seattle.
“This is the first step in establishing a preeminent oncology company,” said Siegall in a statement announcing the deal.
Siegall jumped back into biotech after his resignation in May 2022 from Seagen, following an alleged domestic violence incident involving his then-wife. Prosecutors said in December they would not press charges, due to “evidentiary reasons.”
Seagen, co-founded by Siegall more than two decades ago, said in March that it struck a $43 billion deal to be acquired by Pfizer.
Also in March, Morphimmune announced the appointment of Siegall as its CEO and president. At the time, the Purdue University spinout had raised $17 million and planned to relocate its headquarters to Seattle. In March, it had about ten employees.
“Clay Siegall’s track record of drug development and shareholder value creation is exceptional,” said Immunome Board Chairman Michael Rapp in the statement. He added, “Clay will be positioned to develop best-in-class targeted cancer therapies across multiple modalities.”
Morphimmune’s repertoire resembles the drug class Seagen pioneered, antibody-drug conjugates (ADCs). ADCs deliver a toxin or other payload to cells via an antibody that recognizes a cell surface target. But Morphimmune dispenses with antibodies and instead uses smaller molecules to target cells.
Immunome, which is focused on developing antibody-based drugs, went public in 2020. The company’s stock value has risen more than 30% since the merger was announced Thursday.
The combined company plans to submit three investigational new drug applications, a key step before a clinical trial, to the U.S. Food and Drug Administration within 18 months following the close of the deal, which is expected by the end of the year.
The directors of both companies have approved the all-stock transaction, which will give Immunome stockholders 55% of the combined company, and Morphimmune stockholders about 45% of the company, excluding an inducement grant to Siegall.
Participants in the $125 million private placement that will accompany the deal include Enavate Sciences, EcoR1 Capital, Redmile Group, Janus Henderson Investors, Avidity Partners and Woodline Partners. James Boylan, CEO of Enavate Sciences, will also be appointed to board of directors of Immunome.
Though it will be based in Seattle, the combined company will maintain research labs in Exton, Pa. and Lafayette, Ind.
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