AB2 Bio receives USD 30 million as Nippon Shinyaku takes up US rights

AB2 Bio, based at the EPFL Innovation Park in Lausanne, has received a USD 30 million payment after Nippon Shinyaku exercised its option to commercialize Tadekinig alfa in the United States. The company is eligible for up to USD 100 million in development milestones and up to USD 500 million in commercial milestone and royalty payments.

Founded in 2010, AB2 Bio develops therapies for hyperinflammatory conditions driven by interleukin-18 (IL-18). Primary monogenic IL-18-driven hyperinflammatory syndrome, caused by mutations in the NLRC4 and XIAP genes, leads to sharply elevated levels of free IL-18, a signaling protein that drives systemic inflammation. The condition mainly affects infants and young children, can progress rapidly to multiorgan dysfunction, and has no approved therapies, with standard care managing symptoms rather than the underlying mechanism.

Tadekinig alfa is a recombinant version of the human IL-18 binding protein, the body’s own inhibitor of IL-18, designed to neutralize excess free IL-18 and restore the balance between the two. The company has completed its Phase 3 program in the lead indication and reports clinical proof of concept in three further orphan diseases. The candidate holds orphan drug designation in the United States and Europe, along with breakthrough therapy and rare pediatric disease designations from the US Food and Drug Administration.

The two companies signed an option and license agreement in January 2025, under which AB2 Bio received a USD 6 million option fee. Nippon Shinyaku now holds exclusive US commercialization rights for the licensed indication, while AB2 Bio retains all other indications in the United States and all indications elsewhere. AB2 Bio continues to lead preparation of the Biologics License Application and other US regulatory work, and closing may require clearance under US antitrust law.