AstraZeneca's global biologics research and development division MedImmune will acquire Spirogen, a biotech firm focused on antibody-drug conjugate technology for use in oncology.
Spirogen's complete shares will be purchased by MedImmune for an initial consideration of $200m and deferred consideration of about $240m based on reaching predetermined development targets.
Separately, MedImmune has collaborated with ADC Therapeutics to jointly develop two of its antibody-drug conjugate programs in preclinical development.
The company will also pay $20m for an equity investment in ADC Therapeutics, which has an existing licensing agreement with Spirogen.
The deal will include an upfront payment with predetermined development milestones for two programs from a defined list and a cost- and profit-sharing arrangement with MedImmune representing the majority share.
An antibody-drug conjugate is a clinically-validated cancer drug technology that provides both high potency and selective targeting of cancer cells.
MedImmune executive vice president Bahija Jallal said, "The cutting-edge technologies developed by Spirogen and ADC Therapeutics complement MedImmune's innovative antibody engineering capabilities, enabling us to accelerate antibody-drug conjugates into the clinic."
Spirogen's pyrrolobenzodiazepine (PBD) technology attaches potent cytotoxic agents, or 'warheads' to specific cancer-targeting antibodies using biodegradable linkers.
Spirogen CEO Chris Martin said, "We believe that pyrrolobenzodiazepine-armed antibody-drug conjugates will emerge as a critical component in the next generation of cancer biologics with the potential to make a difference for oncologists and their patients."
