Exicure's Strategic Acquisition: Expanding Drug Development Capabilities and Pipeline Potential

Exicure, Inc. (Nasdaq: XCUR), a biotechnology company focused on developing nucleic acid therapies, has announced a significant strategic move by acquiring GPCR Therapeutics USA Inc., a California-based and former wholly-owned subsidiary of Korean GPCR Therapeutics Inc. The acquisition, executed through a Share Purchase Agreement on January 19, 2025, marks a pivotal moment for Exicure, expanding its drug development capabilities through GPCR Therapeutics' intellectual property portfolio. Concurrent with the acquisition, Exicure and GPCR entered into a License and Collaboration Agreement focused on developing and commercializing GPCR's technologies, with milestone payments and royalty payments tied to clinical trials, marketing authorizations, and net sales.

The financial terms of the acquisition and licensing agreement are particularly noteworthy. The 10% minimum royalty rate is relatively aggressive compared to industry standards, which typically range from 5-8% for early-stage assets. The $30 million milestone payment triggered at $400 million in annual sales suggests substantial commercial expectations, representing a 7.5% milestone fee that's above the typical range of 3-5%. Given Exicure's current market capitalization of approximately $33 million, these financial commitments are substantial and indicate high confidence in the commercial potential of GPCR's technology.

For context, GPCR Therapeutics USA Inc. is a biotech company currently developing Opdivo, an autoimmune disease treatment that generates about $10 billion in annual revenues in the market, as well as the world's first FDA-approved Yervoy, a cancer treatment used to treat lung cancer. The company is led by Dr. Pina Caderelli, the CEO of GPCR USA, who previously served as Vice President at Bristol-Myers Squibb, leading the development of the first-ever immuno-oncology drugs, Yervoy (ipilimumab) and Opdivo (nivolumab).

GPCR USA's ongoing Phase 2 clinical trial is focused on blood cancer patients, particularly those requiring hematopoietic stem cell transplantation (HSCT) for conditions such as multiple myeloma. The trial involves the combined administration of GPC-100 and propranolol. Per Dr. Caderelli, "Two additional patients will receive treatment in January. We plan to complete the administration of GPC-100 to 20 patients by April and aim to announce the clinical trial results in September." In December of last year, GPCR USA presented results at the American Society of Hematology conference, indicating that inhibiting both CXCR4 and ADRB2 (beta-2 adrenergic receptor) resulted in a more than tenfold increase in the anti-cancer efficacy of the AML chemotherapy drug cytarabine. Notably, they reported high response rates and excellent safety profiles in patients receiving the new blood cancer drug daratumumab.



Exicure's acquisition of GPCR Therapeutics USA Inc. provides several strategic advantages, including expanded drug development capabilities, access to a promising clinical pipeline, potential synergies with existing assets, and alignment with long-term growth objectives. The aggressive royalty rate and substantial milestone payments suggest high commercial expectations, which could translate into increased investor confidence and stock performance. However, investors should monitor Exicure's ability to fund the development program and meet milestone obligations, given the company's current market capitalization relative to the potential payment obligations.



In conclusion, Exicure's strategic acquisition of GPCR Therapeutics USA Inc. positions the company for potential future success in the biotechnology industry. By gaining access to GPCR's intellectual property portfolio, promising clinical pipeline, and experienced leadership, Exicure is well-equipped to expand its drug development capabilities and pursue long-term growth objectives. Investors should closely monitor the company's progress and financial performance as it works to capitalize on the opportunities presented by this acquisition.