Melbourne-based biotechnology firm Percheron Therapeutics Ltd (ASX:PER, OTC:PERCF) has entered what it calls a “transformative” deal to license HMBD-002, an immuno-oncology drug candidate, from Singapore's Hummingbird Bioscience.
The agreement grants Percheron exclusive global rights to develop, manufacture and commercialise the monoclonal antibody, which targets the VISTA immune checkpoint, a promising new mechanism for treating various cancers.
Key terms of the agreement
Under the terms of the license agreement, Percheron will pay Hummingbird an upfront payment of US$3 million (A$4.6 million), along with potential milestone payments of up to US$287 million (A$443 million) tied to clinical, regulatory and commercial achievements. The deal also includes tiered royalties on future net sales of any approved product.
HMBD-002 is a recombinant monoclonal antibody that specifically targets VISTA (v-domain immunoglobulin suppressor of T-cell activation), a checkpoint protein involved in the immune system’s ability to recognize and combat cancer cells.
As part of the deal, Percheron aims to initiate a Phase II clinical trial for HMBD-002 in 2026, after successful results from an earlier Phase I trial in the US that showed the drug was safe, well-tolerated and pharmacologically active. The Phase I study was conducted at prestigious institutions, including MD Anderson Cancer Center and Cedars-Sinai Medical Center.
Strategic expansion into immuno-oncology
The licensing agreement marks a significant shift in Percheron’s strategy, which had previously focused on rare disease treatments. CEO Dr James Garner said the company is enthusiastic about the new direction.
“This is a transformative step for our company,” he said. “After the challenges of recent months, we are once again a mid-clinical-stage drug development business.
“We remain absolutely committed to answering unmet medical need. Hummingbird lies at the cutting edge of novel drug design, and we are delighted to partner with them to take forward this very promising drug candidate.”
Immuno-oncology therapies, such as HMBD-002, aim to enhance the body's immune response to cancer. VISTA has emerged as a promising target in this space, with preclinical data suggesting that blocking VISTA could reinvigorate immune responses in cancers that resist existing checkpoint inhibitors like PD-1 or CTLA-4.
Hummingbird’s strategic shift
Hummingbird CEO Dr. Piers Ingram said the Percheron deal aligns with the company’s recent strategic decision to focus on other key programs and technologies in its pipeline, including HMBD-001 and the HER3 program, and make HMBD-002 available for partnering.
“We are pleased to pass the baton on HMBD-002 to the Percheron team,” he said. “We have invested considerable resources and energy into the HMBD-002 program and are delighted to see it continue to more forward under Percheron’s oversight. We remain strong believers in the asset, and we look forward to seeing Percheron’s success as it returns to the clinic.”
HMBD-002 is poised to be a first-in-class therapy targeting VISTA, with no other approved drugs currently targeting this protein. The drug has already demonstrated promising preclinical synergy when used in combination with PD-1 inhibitors such as pembrolizumab (Keytruda®), making it a potential game-changer in immuno-oncology.
Next steps and clinical development
Percheron plans to complete the transfer of HMBD-002 from Hummingbird over the coming months and is already in consultation with clinical experts to refine the drug's development strategy. The company anticipates submitting a detailed clinical development plan in preparation for a Phase II trial, which could begin as early as 2026.
Percheron’s move into immuno-oncology comes at a critical juncture following its decision earlier this year to shift focus away from its previous asset, avicursen (ATL1102), after a disappointing clinical trial result. With this new licensing agreement, Percheron aims to broaden its pipeline and make substantial strides in addressing cancer's unmet medical needs.