Boehringer Ingelheim GmbH is acquiring privately held antibody-drug conjugate developer NBE-Therapeutics GmbH for €1.18 billion.

NBE-Therapeutics' lead compound NBE-002 and integrated ADC platform will be added to the German pharmaceutical company's portfolio, boosting Boehringer Ingelheim's focus on difficult-to-treat solid tumors.

Michel Pairet, a member of Boehringer Ingelheim's board of managing directors, said the NBE-Therapeutics platform has "exceptional" tumor-targeting abilities that can be paired with the company's immune-cell-targeting assets.

NBE-002 belongs to a class of drugs called antibody-drug conjugates, which consist of an antibody that binds to a target on tumor cells to kill the cell without causing further toxicity in the body. NBE-Therapeutics' technology is highly targeted and potent, providing a long-lasting anti-tumor response, according to Boehringer Ingelheim.

The experimental drug is being examined in a number of blood and solid tumor cancers, specifically triple negative breast cancers and non-small cell lung cancer, and is being tested in phase 1 clinical trials.

The deal for the Swiss cancer drugmaker is expected to close during the first quarter of 2021, Boehringer Ingelheim said in a Dec. 10 press release. The transaction also includes clinical and regulatory milestones.

NBE-Therapeutics was backed financially by the Boehringer Ingelheim Venture Fund, PPF Group NV and Novo Holdings A/S.

The deal marks the exit for PPF Group — the largest shareholder as of deal closing — which first invested four years ago, according to a press release issued by the venture fund Dec. 10. The deal includes an up-front payment to NBE-Therapeutics shareholders.