AstraZeneca is shelling out $1 billion upfront in a deal with Daiichi Sankyo for access to the latter’s experimental TROP2-directed antibody-drug conjugate (ADC) DS-1062 for multiple tumour types.

The value of the deal could hit $6 billion, with $1 billion triggered by regulatory approvals and $4 billion linked to future sales.

DS-1062, which is currently in Phase I clinical development for non-small cell lung cancer (NSCLC) and triple negative breast cancer (TNBC), is comprised of a humanised anti-TROP2 monoclonal antibody attached to a topoisomerase I inhibitor payload by a tetrapeptide-based linker with a customised drug-to-antibody ratio (DAR) of four to optimise the benefit-risk ratio for the intended patient population.

Preclinical studies have shown that DS-1062 selectively binds to the TROP2 receptor on the surface of a tumour cell, and it is proposed that the drug is then internalised into the cancer cell where lysosomal enzymes break down the tetrapeptide-based linker and release the DXd payload.

Commenting on the strategy behind the move, José Baselga, the UK-based drugmaker’s chief of oncology R&D, told the Financial Times: “If we can develop agents that have the capacity to elicit responses in patients with cancer . . . it’s a perfect match for our immuno-oncology programmes.”

Johnson & Johnson has entered into an agreement to acquire Momenta Pharmaceuticals, a company that discovers and develops novel therapies for immune-mediated diseases, in an all-cash transaction for around $6.5 billion.

The move broadens Janssen’s presence in immune-mediated diseases and provides the opportunity to drive further growth through expansion into autoantibody-driven disease.

The transaction includes full global rights to nipocalimab (M281), a clinically validated, potentially best-in-class anti-FcRn antibody, which J&J says will give Janssen the opportunity to reach significantly more patients by pursuing indications across many autoimmune diseases with substantial unmet medical need in maternal-foetal disorders, neuro-inflammatory disorders, rheumatology, dermatology and autoimmune haematology.

With competitively differentiated, parallel development programmes and full worldwide commercial rights for nipocalimab, Janssen will have the potential to introduce multiple launches, many as first-in-class indications with potential for significant peak year sales, some of which could exceed $1 billion, the firm noted.

Sanofi has announced plans to acquire group Principia Biopharma, a late-stage group focused on developing treatments for immune-mediated diseases.

Under the deal, which has been unanimously approved by both parties, the French drug giant will acquire all of the outstanding shares of Principia for $100 per share in cash, representing an aggregate equity value of around $3.68 billion.

“This acquisition advances our ongoing R&D transformation to accelerate development of the most promising medicines that will address significant patient needs,” said Sanofi’s chief executive Paul Hudson. “The addition of multiple BTK inhibitors to our pipeline demonstrates our commitment to strategic product acquisitions in our priority therapeutic areas.”