Agenus Inks $141M Deal with Zydus, Transfers California Manufacturing Plants

Agenus, a Massachusetts-based biotech company, has entered into a strategic partnership with Indian drugmaker Zydus Lifesciences, valued at up to $141 million. The deal, announced on June 3, 2025, involves the transfer of two California manufacturing facilities to Zydus and aims to accelerate the development of Agenus' cancer combination therapy.

Manufacturing Plant Transfer and Financial Details

As part of the agreement, Agenus will receive $75 million in cash for its two California production plants:

• A 25,000-square-foot facility in Berkeley, California, focused on clinical manufacturing
• An 83,000-square-foot plant in Emeryville, California, set up for commercial manufacturing

In addition to the upfront payment, Agenus stands to gain up to $50 million in contingent payments tied to future production orders for its botensilimab/balstilimab (BOT/BAL) combination therapy. Zydus will also invest approximately $16 million to acquire 2.1 million shares of Agenus at $7.50 per share.

Strategic Objectives and Development Plans

The partnership is designed to accelerate the development of Agenus' cancer combination therapy, BOT/BAL, while also scaling up global manufacturing capabilities. Botensilimab, a CTLA-4 blocking antibody, and balstilimab, a PD-1 inhibitor, form the core of this promising immunotherapy combination.

Sharvil Patel, Managing Director of Zydus, expressed enthusiasm about the collaboration, stating, "We are thrilled to be partnering with Agenus to advance BOT/BAL, which has the potential to benefit thousands of patients in our core markets of India and Sri Lanka annually and millions of solid tumor patients globally."

Zydus plans to leverage the newly acquired U.S. facilities to launch its BioCDMO business. The company also intends to conduct clinical trials for BOT/BAL in both early-stage and late-stage disease settings, with plans to expand beyond colorectal cancer to other major indications such as triple-negative breast cancer.

Agenus' Strategic Shift and Regulatory Challenges

This deal comes in the wake of significant challenges faced by Agenus in recent years. In July 2024, the FDA halted Agenus' plans to file for accelerated approval of the BOT/BAL combination for treating patients with relapsed/refractory microsatellite stable colorectal cancer. This setback led to a 38% drop in the company's stock price and triggered an aggressive reorganization.

Previously, in 2021, Agenus had withdrawn its application for balstilimab in cervical cancer treatment after Merck's Keytruda received an early expansion approval in the same indication. These regulatory hurdles have prompted Agenus to refocus its efforts on the BOT/BAL combination therapy, including a workforce reduction of 25% in 2023 to streamline operations.

The funds raised from this latest deal with Zydus will be used for working capital and to further the development of the BOT/BAL combination, demonstrating Agenus' commitment to advancing this potential breakthrough in cancer immunotherapy.