On December 23rd, Ikena Oncology and Inmage Biopharmaceuticals announced that they have signed a final merger agreement.

The merged company will focus on developing IMG-007, a monoclonal antibody against OX40 for the treatment of atopic dermatitis. The merged company plans to operate under the name "ImageneBio" and trade on NASDAQ under the stock code "IMA".

This transaction is expected to generate approximately $175 million in funding to support the further development of IMG-007, including $75 million from oversubscribed private equity, which will be completed immediately after the merger

This financing includes new investors such as Deep Track Capital, Foresite Capital, RTW Investments, as well as existing Ikena investors such as BVF Partners L.P., Blue Own Healthcare Opportunities, Omega Funds, and OrbiMed.

Expected transaction to be completed by mid-2025

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OX40 is a cost stimulating receptor that primarily exists on activated T cells. In placebo-controlled studies of atopic dermatitis, anti-OX40 mAb has shown efficacy. IMG-007 is a mAb targeting OX40, which can be used for various inflammatory indications such as atopic dermatitis, asthma, suppurative tonsillitis, systemic sclerosis, etc. The half-life of IMG-007 is longer than other OX40 targeted mAbs in phase 2 and later development stages, therefore it has the potential for dose and time optimization.

In addition, IMG-007 also has the function of inhibiting antibody dependent cytotoxicity (ADCC) and does not consume T cells, so the tolerance of IMG-007 may be improved compared to other mAbs in the same class. The Phase 2b clinical trial of IMG-007 for the treatment of atopic dermatitis is expected to begin in early 2025.

After the merger and financing are completed, Ikena shareholders are expected to own approximately 34.8% of the shares in the merged company. The equity holders of Chuangxiang Biotechnology are expected to hold approximately 43.5% of the shares, while the financing investors are expected to hold approximately 21.7% of the shares.

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Ikena pipeline

Dr. Jian Wang, founder, chairman, and CEO of Chuangxiang Biotechnology, said, "We are pleased to collaborate with the Ikena team and multiple world-class healthcare investors on this reverse merger and PIPE transaction. This is an important step for us to obtain strong resources to maximize opportunities for IMG-007, a highly differentiated candidate drug with first-class potential. We are fully capable of advancing the development of IMG-007 and look forward to executing our development plan in atopic dermatitis and potential other indications