Ikena Oncology & Inmagene: A Merger for Inflammatory Disease Breakthroughs

Ikena Oncology and Inmagene Biopharmaceuticals have announced a definitive merger agreement, creating a combined entity focused on developing innovative treatments for inflammatory diseases. The merger, expected to close in mid-2025, will result in a combined company called ImageneBio, Inc., with a market capitalization of approximately $350 million. The transaction is supported by a $175 million financing round, including a $75 million oversubscribed private placement led by prominent healthcare investors.

The merger aligns strategically with both companies' goals, as they combine their expertise to advance the development of IMG-007, a non-depleting anti-OX40 monoclonal antibody with an extended half-life and silenced ADCC function. Ikena, seeking a compelling partner, found Inmagene's differentiated clinical data in atopic dermatitis and IMG-007's potential across the I&I space to be a strong fit. Inmagene, aiming to maximize opportunities for IMG-007, gains powerful resources through this reverse merger and PIPE transaction.

The combined company will focus on the development of IMG-007, a monoclonal antibody (mAb) targeting OX40, for the treatment of atopic dermatitis. IMG-007 has demonstrated promising clinical data in atopic dermatitis and has potential utility in a wide range of inflammatory indications, including asthma, hidradenitis suppurativa, systemic sclerosis, and others. With a longer half-life compared to other OX40-targeting mAbs in Phase 2 and later development, IMG-007 enables dose and schedule optimization. Additionally, its silenced ADCC function and non-T cell depleting nature may lead to an improved tolerability profile relative to other mAbs in the class.

The $175 million financing round, including the $75 million oversubscribed private placement, addresses the combined company's capital requirements for the Phase 2b clinical trial of IMG-007 in atopic dermatitis and potential additional indications. This funding will support further development of IMG-007, a non-depleting anti-OX40 monoclonal antibody with an extended half-life and silenced ADCC function. The financing includes both new investors such as Deep Track Capital, Foresite Capital, RTW Investments, and existing Ikena investors such as BVF Partners L.P., Blue Owl Healthcare Opportunities, Omega Funds, and OrbiMed. This strategic partnership and funding will enable ImageneBio to advance IMG-007 development and execute its development plan in atopic dermatitis and potentially additional indications.

The combined company's board of directors will be comprised of three directors from the current Inmagene board, two directors from the current Ikena board, a board member representing the investors in the Financing, and a new independent board member. Inmagene and Ikena will mutually decide on future leadership of ImageneBio and a formal search for the chief executive officer of the combined company has been initiated. The shareholders of the two companies will obtain contingent value rights (CVRs), with Inmagene shareholders receiving CVRs for Inmagene's non-IMG-007 assets and Ikena shareholders receiving CVRs for Ikena's legacy pipeline assets.

The merger between Ikena Oncology and Inmagene Biopharmaceuticals presents an exciting opportunity for investors seeking exposure to innovative treatments for inflammatory diseases. With a strong pipeline, experienced management team, and robust financial backing, ImageneBio is well-positioned to capitalize on the growing demand for effective therapies in this space. As the company progresses through clinical development and potentially towards commercialization, investors can expect to see significant value creation and long-term growth potential.