Argenx inks $1.5B deal with Unnatural Products for oral peptide drugs

Argenx is partnering with start-up Unnatural Products in a deal worth up to $1.5 billion to develop once-daily oral macrocyclic peptides for inflammatory and immunological diseases.

Why it matters: The partnership aims to replace injectable antibody drugs with more convenient oral treatments, potentially transforming patient care and strengthening Argenx’s immunology pipeline.

Backstory: Unnatural Products had been considering Argenx as a potential partner, but it was Argenx who approached them first. The start-up, already collaborating with Merck and BridgeBio, is navigating a tight biotech funding market by pursuing strategic partnerships instead of relying solely on equity investment.

Big picture: Oral macrocyclic peptides could offer a major shift in immunological drug delivery, eliminating the need for infusions, improving shelf-stability, and expanding access, especially in low-resource settings. For Argenx, it's a way to diversify beyond injectables like its lead drug Vyvgart.

Money bag: The deal, valued at up to $1.5 billion, includes a double-digit million-dollar upfront payment, milestone payments, R&D funding, and an equity investment in Unnatural Products. Unnatural Products, with 40 employees, is also preparing a Series B funding round.