West Hollywood-based biotech company CellxLife Inc. is a bit unusual: it not only develops drug therapies but also acquires licensing rights to drugs initially developed by other companies and institutions. It then takes the licensed drugs through late-stage clinical trials with the aim of getting approval from the Food and Drug Administration.
Last month, CellxLife announced it had licensed from Rochester, Minnesota-based Mayo Clinic a therapy that uses specialized cells – known as dendritic cells – to train the body’s immune system to recognize and then attack ovarian cancer cells. This complements CellxLife’s existing dendritic cell platform that targets pediatric bone cancers.
Financial terms of the licensing deal were not disclosed.
“We are eager to advance this promising vaccine to address a patient population that urgently needs more effective options to reduce relapse and prolong survival,” Eric von Hofe, chief executive and co-founder of CellxLife, said in the company’s announcement.
CellxLife said it is moving ahead with a Phase 2 clinical trial of the dendritic cell therapy. In a Phase 1 clinical trial conducted by the Mayo Clinic, approximately 40% of the enrolled patients remained cancer free for 10 years, compared with a benchmark of 10%.
Mixed results
CellxLife is not the only local company that has used this licensing strategy of drug development.
Agoura Hills-based Acelyrin Inc. tried this on a much bigger scale, raising hundreds of millions of dollars privately before raising $540 million through an initial public offering in 2023.
Four months after the IPO, it reported that a clinical trial for its leading acquired drug candidate didn’t show any improved performance over a placebo. Its stock plunged more than 50% and months later the company laid off one-third of its staff. A leadership shakeup also ensued. Last year, Acelyrin was acquired by South San Francisco-based Alumis Inc.
CellxLife executives are clearly hoping for a better outcome.
