Unnatural Products, Inc. (UNP), a biotech developing orally-delivered macrocyclic peptides to address previously undruggable targets, has entered into a definitive agreement to be acquired by global immunology company argenx.
Under the terms of the agreement, argenx will acquire all the outstanding equity of UNP for total potential value of up to approximately $1.15bn. Upon closing, UNP will continue operating from its Santa Cruz site as part of argenx’s global research organisation, expanding argenx’s discovery capabilities and further strengthening its innovation engine. Closing is expected by year-end, subject to customary closing conditions.
“Today is a tremendous milestone for UNP and a testament to the exceptional work of our scientists, employees, collaborators and supporters,” said Cameron Pye, CEO and co-founder of UNP.
“From the earliest days, we believed our platform had the potential to redefine what is possible in the discovery and design of new medicines. I am so proud of what our team has accomplished and believe argenx provides the ideal environment to accelerate and amplify that vision to bring innovative therapies to patients.”
“Our ambition is to be the leading immunology innovation company, and as argenx builds its next chapter, we are investing with discipline where it will count the most for patients,” said Karen Massey, chief executive officer of argenx.
“UNP adds macrocyclic peptide capabilities that are highly complementary to our antibody engineering and creates new possibilities for oral and long-acting medicines. After working together for more than two years, we also know there is a strong fit in how we work: science first, entrepreneurial and focused on patients. We want to preserve what has made UNP successful while bringing the strengths of both teams together.”
Macrocyclic peptides combine the precision and efficacy of biologics with the convenience of oral dosing and can reach intracellular targets that have long been out of the range of conventional drugs. Over the past 10 years, UNP has built an integrated discovery platform that pairs AI-guided design with parallel synthesis and direct-to-biology screening, allowing the company to repeatedly engineer drug-like macrocycles at scale.
UNP was founded in 2016 by Pye and chief scientific officer, Joshua Schwochert, during the final year of their doctoral research in Dr. Scott Lokey’s lab at the University of California, Santa Cruz. They believed the industry was overlooking the therapeutic potential of macrocyclic peptides and started the company in Schwochert’s garage. UNP has since become a leading platform company in the macrocyclic peptide field. It has secured four major pharmaceutical partnerships in under five years. The company, still proudly based in Santa Cruz, now employs more than 50 people.
Schwochert said: “This is the result of years of scientific innovation and tenacious execution by an extraordinary team. UNP has had real momentum in recent years based on strong investor support and multiple partnerships. While we evaluated multiple options for growing as a company, argenx brought a shared belief in the science, a strong cultural fit, and a commitment to preserving the innovative spirit that helped build our platform. We are excited about staying true to our roots in Santa Cruz while exploring what we can accomplish together.”