LG Chem Boosts Oncology Offering with Aveo Buy
South Korea’s LG Chem is to acquire US biopharma Aveo Oncology for an equity value of $566 million. Based in Boston, Massachusetts, Aveo is focused on developing cancer treatments.
LG Chem said the acquisition will extend its Life Sciences’ commercial footprint to the US, diversify its pipeline with a broad range of oncology therapies and accelerate its efforts to deliver continued growth through the development and commercialization of world-class cancer therapies.
“This transaction represents the next step in our portfolio transformation toward higher growth markets and provides a strong commercial foundation in oncology as we continue to develop our anti-cancer offerings,” said LG Chem CEO Shin Hak-Cheol. “We remain focused on prudently investing in our R&D capabilities, continuing to build a leading portfolio of therapies and transforming lives through inspiring science and leading innovation.”
Aveo’s lead product is Fotivda (tivozanib), which received US Food and Drug Administration (FDA) approval in March 2021 for treating adults with relapsed or refractory advanced renal cell carcinoma (RCC) following two or more prior systemic therapies.
The company said it continues to develop tivozanib in immuno-oncology combinations in RCC and other indications with significant unmet medical needs, including hepatocellular carcinoma, tumors resistant to immunotherapy, or immunologically cold tumors, in combination with immune checkpoint inhibitors.
Aveo is also evaluating tivozanib as a monotherapy forcholangiocarcinoma, and has a pipeline of four immunoglobulin G1 monoclonal antibody product candidates – ficlatuzumab, AV-380, AV-203 and AV-353.
Michael Bailey, president and CEO of Aveo added: “By joining forces with LG Chem, Aveo expects to have significant financial and development resources to help Aveo fully realize the tremendous potential of our promising pipeline.”
The combined company will be headquartered in Seoul, South Korea, and LG Chem also expects to maintain a significant presence in Boston and Cambridge, Massachusetts, the location of the LG Chem Life Sciences Innovation Center.
Both boards have unanimously approved the transaction, which is expected to close in early 2023, after when Aveo will operate as the US commercial foundation for LG Chem Life Sciences’ oncology segment.
Author: Elaine Burridge, Freelance Journalist
