Former rare disease firm Aeglea BioTherapeutics has reinvented itself by acquiring newly minted Spyre Therapeutics, which has a pipeline of antibody therapeutics for inflammatory bowel disease (IBD). Spyre says it specializes in long-acting antibodies, rational therapeutic combinations, and precision immunology approaches.
Concurrent with the stock-for-stock deal, Aeglea entered a private placement with a group of investors led by Fairmount Funds Management LLC. The private placement is expected to result in gross proceeds to Aeglea of approximately $210 million. The proceeds are intended to be used to advance Spyre’s portfolio of IBD products and fund operations into 2026.
“The concurrent launch of Spyre and acquisition by Aeglea will provide immediate access to the public capital markets and the opportunity to accelerate research and development efforts for our broad pipeline of biologics,” said Cameron Turtle, DPhil, newly appointed Chief Operating Officer of Aeglea.
Aeglea was founded in 2013 to develop enzyme treatments for rare metabolic diseases. But in April of this year, the firm announced disappointing results from a Phase I/II trial of pegtarviliase, a novel recombinant human enzyme engineered to reduce elevated levels of total homocysteine, for the treatment of Classical Homocystinuria. The company then set out to strategically reposition.
Spyre is the second spinout of antibody developer Paragon Therapeutics. Spyre says it aims to maximize the efficacy, safety, and convenience of treatments for IBD.
IBD causes chronic inflammation of the digestive tract and can lead to diarrhea, rectal bleeding, abdominal pain, fatigue and weight loss. Symptoms can range from mild to life-threatening. There are approximately 1.7 million IBD patients in the U.S. and biologics are the preferred treatment for moderate-to-severe patients.
The IBD global market, which includes Crohn’s disease and ulcerative colitis, is estimated to surpass $29 billion by 2028.
Spyre’s two parallel lead programs, still in discovery, are SPY001 and SPY00, which target a4b7 and TL1A, respectively. These programs are projected to enter clinical studies in 2024, with clinical data for SPY001 expected by YE2024.
“A continued unmet need exists for novel therapeutics that improve both efficacy and convenience for patients suffering from inflammatory bowel disease. We appreciate the support of this outstanding investor syndicate and their confidence in Spyre’s approach to develop transformative treatments for this chronic condition,” Turtle said.
“Our management and our Board of Directors thoroughly explored numerous strategic alternatives and believe this acquisition of Spyre provides a phenomenal outcome for our stockholders,” said Jonathan D. Alspaugh, president and chief financial officer, Aeglea.
He added that, “Spyre’s approach to therapeutics development aims to transform the current treatment experience for individuals living with IBD. The company is making rapid progress advancing their two parallel lead programs into the clinic, and we believe these programs will enable us to capture a sizable share of the growing IBD market.”
