SWITZERLAND – Roche’s subsidiary, Genentech, has decided to end its collaboration with Nykode Therapeutics (formerly Vaccibody) concerning the clinical-stage cancer vaccine VB10.NEO.
The partnership, originally formed in 2020, was focused on developing an individualized neoantigen vaccine for advanced tumors.
Genentech paid an upfront fee of US $200 million and had the potential to provide an additional US $515 million in milestones.
The termination of the agreement will take effect on January 6, 2025, as confirmed in a release by Nykode on November 7. Notably, Nykode will not be required to repay any of the funds received from Genentech under the agreement.
CEO Michael Engsig commented on the decision, stating, “It’s our clear impression that this decision by Genentech-Roche is a result of an assessment of their overall portfolio of activities… and not related to anything we have observed in the program.”
Engsig emphasized that Nykode is now exploring potential new partnerships for the cancer vaccine, with further updates expected.
Clinical trials and data analysis
VB10.NEO has been tested in two clinical trials, including a Phase 1b study in combination with Roche’s PD-L1 inhibitor, Tecentriq.
The trial, which involves patients with advanced and metastatic tumors, is in its final stage.
Despite the termination, Engsig remains confident in the potential of the vaccine, stating, “This is obviously a surprise for us, not least in the light of the good ongoing discussions we had with the Genentech team.”
The Phase 1b trial’s data is still being analyzed and has not been made public yet, but Engsig noted that there is no indication that the termination is related to any negative data from the trial.
Roche’s broader restructuring strategy
The termination comes at a time of internal restructuring within Roche. In August, the company announced it would dissolve its cancer immunology division and merge it with its molecular oncology research group.
This shakeup is part of Roche’s reassessment of its oncology strategy, as the company has faced challenges in establishing itself as a leader in the immuno-oncology space.
In addition to the Nykode partnership, Genentech is also working with BioNTech on an individualized mRNA cancer vaccine, which has progressed to Phase 2 testing following promising Phase 1 results.
Despite these moves, Roche’s decision to pass on VB10.NEO highlights its shifting priorities within the oncology field.
Impact on Nykode’s stock
The news of the termination has had an immediate impact on Nykode’s stock, which dropped significantly on the Oslo Stock Exchange. Shares fell from US $4.29 to US $2.27.
As Nykode moves forward without Genentech, the company is focused on exploring new partnerships and determining the best path for its cancer vaccine program.
Engsig affirmed, “We remain confident in the potential of the personalized cancer vaccine asset.”
With the partnership coming to an end, Nykode will continue its Phase 1b study in advanced tumors and work toward finding new collaborators to help bring VB10.NEO to market.
