KdT Ventures has licensed NGM313 from NGM Biopharmaceuticals to form a new biotechnology startup focused on developing the drug for an unspecified rare disease. The deal, announced Thursday, grants KdT's new venture worldwide rights to NGM313, an experimental antibody drug. NGM Bio will receive an equity stake in the new company, an upfront cash payment, and potential milestone payments up to $608 million, as well as royalties on future sales.
NGM313, an antibody drug that activates a cluster of proteins involved in metabolism, was previously investigated for diabetes and metabolic dysfunction-associated steatohepatitis (MASH). Merck & Co. had licensed the drug in 2019 but returned the rights in 2023 after it did not meet their effectiveness criteria in a Phase 2 trial. Despite this, NGM and KdT highlight that NGM313 has been studied in over 300 volunteers, demonstrating proof of mechanism and a favorable tolerability profile.
Revival of NGM313
The licensing agreement marks a new chapter for NGM313. Cain McClary, KdT’s founder and managing partner, stated, "Our partnership with NGM Bio to advance NGM313 into clinical development for an important and chronically underserved patient population reflects KdT’s commitment to backing transformative science that meaningfully impacts patients' lives." A Phase 2 trial is anticipated to commence next year, focusing on a non-metabolic disease.
NGM Bio's Strategic Shift
For NGM Bio, this deal represents a strategic move after facing challenges with other drug candidates. Following failures in mid-stage trials for MASH and geographic atrophy, the company underwent restructuring, including layoffs. David Woodhouse, NGM Bio CEO, expressed enthusiasm for NGM313's future under KdT's leadership: "We’re excited for NGM313’s next chapter under the stewardship of KdT’s new venture."
Additional details regarding the new startup are expected to be disclosed in the coming months, according to McClary.
