Concentra Biosciences Acquires iTeos Therapeutics Amid TIGIT Drug Failure

Concentra Biosciences has announced its acquisition of iTeos Therapeutics, marking another strategic move in its series of biotech company purchases. The deal comes in the wake of iTeos' failed TIGIT drug program, which had been developed in partnership with pharmaceutical giant GSK.

Acquisition Details and iTeos' Recent Struggles

Concentra has agreed to purchase iTeos for $10.05 per share in cash, slightly below the company's closing price of $10.26 on the previous trading day. The deal structure includes a non-transferable contingent value right for iTeos shareholders, allowing them to receive additional benefits based on the company's remaining cash reserves and potential asset sales.

iTeos' decision to sell comes after a significant setback in May when its anti-TIGIT antibody, belrestotug, failed to meet clinical expectations. The drug's progression-free survival data fell short of what iTeos and GSK considered clinically meaningful, leading to a halt in the program and prompting iTeos to consider strategic alternatives.

Concentra's Acquisition Strategy and iTeos' Pipeline

This latest acquisition aligns with Concentra's reputation for purchasing struggling biotech firms. In recent months, the company has completed mergers with several other biotechs facing challenges, including Elevation Oncology, Kronos Bio, Allakos, IGM, and Cargo Therapeutics.

Despite the failure of its lead program, iTeos brings valuable assets to Concentra. The Belgian biotech's pipeline includes EOS-984, an ENT1-inhibitor, and EOS-215, an anti-TREM2 antibody, both in phase 1 development for solid tumors. Additionally, iTeos has a preclinical obesity program targeting ENT1.

Industry Implications and Future Outlook

The acquisition of iTeos by Concentra highlights the ongoing consolidation in the biotech sector, particularly among companies facing setbacks in drug development. It also underscores the challenges in developing TIGIT inhibitors, a class of immunotherapy drugs that has seen mixed results across the industry.

While Concentra's strategy of acquiring struggling biotechs has been largely successful, it has faced some resistance. Earlier this year, two unnamed biotechs enacted "poison pill" defenses to ward off Concentra's advances, with one opting to merge with another company instead.

As the pharmaceutical landscape continues to evolve, industry observers will be watching closely to see how Concentra integrates iTeos' assets and whether this acquisition strategy will yield long-term success in drug development and commercialization.