Inhibrx Biosciences has attracted attention from several pharmaceutical companies for its experimental cancer therapy INBRX-106, with potential valuation estimates exceeding $8 billion, according to individuals familiar with the matter. Companies reported to have shown interest include Merck & Co, Germany’s Merck KGaA, and Japan’s Ono Pharmaceutical.
The San Diego-based biotechnology firm is evaluating a joint spin-off of INBRX-106 alongside another investigational cancer treatment. Together, the two assets could be valued at more than $9 billion if clinical trials are successful, the sources said. Interest has primarily centered on INBRX-106, which is currently being studied both as a standalone treatment and in combination with Keytruda, Merck’s widely used immunotherapy.
Keytruda, which is approved across multiple cancer indications, generated nearly half of Merck’s global revenue in 2025. Inhibrx has indicated that INBRX-106 may enhance the effectiveness of this therapy. Discussions regarding a potential deal remain in early stages, and any agreement is not expected in the near term. Valuation will depend heavily on upcoming clinical data. Inhibrx declined to comment on the matter, while the other companies involved did not immediately respond to inquiries.
Developments related to both INBRX-106 and another candidate, ozekibart, are expected in the coming months. According to people familiar with the situation, clinical trial results may support the positioning of both therapies. The company has stated that it plans to provide updates on ozekibart, which recently received fast track and orphan drug designations from the U.S. Food and Drug Administration. It is also anticipated that Inhibrx will announce a regulatory filing for this treatment.
Ozekibart has shown positive outcomes in Phase 1/2 studies targeting Ewing sarcoma and colorectal cancer. In one study involving Ewing sarcoma patients, tumor reductions of approximately 52% were observed, according to company disclosures. The therapy is designed to induce cancer cell death and could carry a valuation of around $1 billion, based on estimates from two of the sources.
INBRX-106, an antibody designed to activate a receptor on T cells and strengthen immune response, may achieve a significantly higher valuation if ongoing trials confirm its effectiveness. Early findings from more than half of the 60 patients enrolled in Phase 2/3 trials combining the drug with Keytruda suggest an improvement in overall response rates to 45%, compared to 30% for Keytruda alone, one source said. Interim data from these studies are expected to be released next month.
“We think INBRX-106 is highly investable through targeting the narrow Keytruda-responder base to enhance this $32 billion drug’s cure-like efficacy,” said Dara Azar, a biotech analyst at Stifel, in a client note.
The drug is being tested in patients with advanced head and neck cancers, where treatment options are limited. Its development has drawn attention partly due to its potential strategic relevance. Merck, for example, is seeking new sources of revenue as Keytruda approaches the expiration of its patent protections in 2028. However, sources indicated that this alignment does not provide Merck with a distinct advantage in any potential acquisition process.
Other pharmaceutical companies, including Eli Lilly, AstraZeneca, Pfizer, and Johnson & Johnson, may also find the drug appealing as they look to strengthen their oncology portfolios. However, INBRX-106 is not expected to reach the market before biosimilar competition for Keytruda emerges.
Inhibrx is reportedly considering a transaction structure similar to its 2024 agreement with Sanofi, in which Sanofi acquired INBRX-101 for $30 per share in cash along with a $5 contingent value right tied to regulatory milestones.
Overview of Inhibrx Strategic Move
Inhibrx is reportedly evaluating a strategic spin-off of its cancer drug portfolio as growing interest from multiple pharmaceutical companies highlights the value of Inhibrx oncology assets. This move by Inhibrx reflects a broader industry trend where biotech firms streamline operations to unlock shareholder value and focus on core competencies.
Why Inhibrx Is Considering a Spin-Off
The potential spin-off by Inhibrx is driven by increasing external interest in its oncology pipeline. By separating its cancer-focused assets, Inhibrx could create a more specialized entity that attracts targeted investments and partnerships. Additionally, this strategy allows Inhibrx to sharpen its focus on other therapeutic areas while maximizing the value of its oncology innovations.
Market Interest in Inhibrx Oncology Portfolio
Several drugmakers have reportedly shown interest in Inhibrx cancer drug programs, underscoring the commercial and clinical potential of its pipeline. This heightened attention positions Inhibrx favorably in negotiations, whether it pursues a full spin-off, partial divestment, or strategic collaborations.
