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STRASBOURG, France - Transgene (Euronext Paris:TNG) and NEC Bio B.V., a subsidiary of NEC Corporation (TSE:6701)NEC Bio B.V., a subsidiary of TNG, today signed a license agreement for the clinical development of TG4050, an individualized cancer vaccine against HPV-negative head and neck tumors. NEC, a $33.6 billion IT services company, brings its AI expertise to the partnership.
TG4050 utilizes an MVA-based viral vector containing neoantigens selected by NEC's AI-powered prediction platform. The therapy targets tumor-specific genetic mutations that are unique to each patient and is being evaluated for the prevention of relapse after surgery and adjuvant therapies.
Under the agreement, Transgene gains access to NEC's AI-based neoantigen prediction platform for the further development of TG4050 for the adjuvant treatment of resected HPV-negative head and neck tumors. The license includes rights for clinical development, commercialization and potential partnerships. NEC retains ownership and operational control of its AI platform.
NEC will receive a technology access fee of €2.5 million in the form of Transgene shares and a further €2.5 million in cash until early 2028. The company is also entitled to undisclosed development milestone payments and a double-digit share of profits or royalties. According to an analysis by InvestingPro the NEC share is currently trading below its fair value and has a "GOOD" score for financial health. The stock appears on the platform's watchlist for the am stärksten unterbewerteten stocks.
Transgene will issue 3,345,824 new shares to NEC Bio B.V. at a price of €0.7472 per share, representing 1.22% of the share capital after the issue. The price corresponds to the volume-weighted average of the last five closing prices on Euronext Paris prior to the signing of the agreement. The capital increase is based on a resolution of the Combined General Meeting of May 15, 2025 and is expected to be completed by the end of April 2026.
TG4050 is currently in a Phase 2 trial. The therapy utilizes NEC's neoantigen prediction system, which uses machine learning to select mutations that are likely to elicit strong immune responses.
This article is based on a press release from the companies.
