Boehringer buys oncology player Nerio in $1.3bn deal

Boehringer Ingelheim has bought Nerio Therapeutics, saying that it is adding a programme that – while still in preclinical development – could be a "centrepiece" of its immuno-oncology pipeline.

California, US-based Nerio is developing a series of small-molecule checkpoint inhibitors designed to rev up the immune system to fight cancers, focusing on compounds that target protein tyrosine phosphatases N1 and N2 (PTPN1 and PTPN2).

According to Nerio, inhibiting these enzymes can disrupt a tumour's ability to evade the immune system and, according to co-founder and chief executive Sanford Madigan – also a partner at Avalon BioVentures, which incubated Nerio since its founding in 2019 – its compounds have "superior drug-like properties and provide a first-in-class opportunity."

The biotech has been preparing to file for approval to start clinical trials of its lead candidate later this year.

It is the first acquisition for Boehringer since its takeover of T3 Pharma for just over $500 million last year and comes amid a busy period of dealmaking at the company as it builds its pipeline. Deals in the last few months – in cancer alone – have featured partnerships with OSE Immunotherapeutics, CBmed, T3Bio, and Enara Bio.

The specific terms of the Nerio takeover have not been disclosed, including the upfront payment, but according to Boehringer could reach $1.3 billion if all conditions are met.

"Securing the rights to Nerio Therapeutics' novel checkpoint inhibitors creates a broad panel of exciting new cancer treatment combination opportunities," Paola Casarosa, a member of the board of managing directors at Boehringer, said in a statement.

"This brings us a major step closer to our vision of transforming the lives of people living with cancer," she added.

Boehringer has made immuno-oncology a key part of its aspirations in cancer and recently started clinical testing of a first-in-class SIRPα inhibitor, one of the new candidates partnered with OSE Immunotherapeutics, into a phase 1b trial.

Boehringer said in April that its R&D pipeline is the best in its 139-year history and puts it on track to launch 25 new treatments in its human pharma division onto the market between now and 2030.

The company expects to start around 10 new phase 2 and 3 trials within the next 12 to 18 months, supported by an R&D spend that reached €5.8 billion last year, a rise of 14%.