Merck cancer trial for biotech Immutep

The Lucy Turnbull-backed biotech Immutep has signed a deal with pharmaceutical giant Merck to test the junior’s cancer drug.

Lucy Turnbull is one of Immutep’s largest private shareholders and was chairwoman of the biotech for seven years. Picture: James Croucher

The Lucy Turnbull-backed biotech Immutep has signed a deal with pharmaceutical giant Merck to test the junior’s cancer drug after raising about $7 million to fund future clinical trials.

Merck, fresh from its $500 million takeover of Australian cancer drug start-up Viralytics, agreed with Immutep to conduct a clinical trial on the combination of their immunotherapy drugs in patients with non-small cell lung cancer, head and neck cancer, or ovarian cancer.

Shares in Australian-listed Immutep, which was previously chaired by Mrs Turnbull, increased 16.7 per cent on the news to close at 2.8c.

“This clinical trial will evaluate a novel combination of two complementary immune-oncology treatments in three cancer indications simultaneously, which could lead to more rapid drug development subject to successful outcomes,” Immutep chief executive Marc Voigt said.

“You should select indications if you feel you can make a difference to the existing standard of care. We have three cancer indications where one should try and improve the situation for the ­patients.”

The new trial will test the combination of Merck’s well-known Keytruda drug with Immutep’s lead product, efti. The company plans to start recruiting patients in the second half of this year and the first data could be available in the second half of 2019.

Mr Voigt said the company had been in discussions with Merck since mid-2017.

“When you aim to collaborate with big pharma, you should take the biggest player and those that have products approved in the market,” he said.

“Keytruda is approved and registered and there is a lot of clinical experience behind it.”

Immutep had previously signed deals with pharmaceutical giants Novartis and GSK and has a manufacturing deal in China.

Share price - for immutep 2.8 cents

“We have three of the top 10 pharma companies as our partners on three different product candidates,” Mr Voigt said.

Immutep also announced to the market yesterday that it had raised $6.85 million via a placement and had launched a share purchase plan for existing shareholders.

Mrs Turnbull, one of Immutep’s largest private shareholders with just under 1 per cent, participated in the placement, along with Australian Ethical and Platinum Asset Management.

The company said the funds would be used to support its immune-oncology clinical development programs, its preclinical program in auto-immune disease and for general working capital purposes.

“We are encouraged by the continued support of our former chairman, Lucy Turnbull and existing shareholder, Ridgeback Capital Investments,” Mr Voigt said.

“Lucy Turnbull is one of our major shareholders and we are in regular contact. She knows us well, having been our chairman.”