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argenx buys a peptide chemistry company to build oral immunology drugs

argenx buys a peptide chemistry company to build oral immunology drugs

Money Moves

The $550 million upfront deal adds macrocyclic peptide expertise to argenx's antibody business

Yesterday: argenx agrees to buy Unnatural Products

Overview

Updated 1 hour ago

Every medicine argenx sells today reaches patients by infusion or injection. On Nov. 9, 2026, the Dutch immunology company agreed to pay $550 million in cash for a Santa Cruz company whose chemistry is built to make pills instead.

Unnatural Products engineers macrocyclic peptides: molecules large enough to grab tricky protein targets, yet small enough to be swallowed. argenx will fold that platform into its antibody work and aim it at immune-mediated diseases. The deal could reach about $1.15 billion if development and regulatory milestones are met.

Why it matters

Every argenx drug today is an injection. If this chemistry works, autoimmune patients could take a daily pill instead.

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Key Indicators

$550M
Upfront cash payment
Paid from argenx's cash on hand at closing.
$1.15B
Total potential consideration
Includes up to $595 million in development and regulatory milestones.
$4.5B
Vyvgart net sales, Jan–Sept 2026
argenx's flagship antibody drug, all delivered by infusion or injection.
3
Prior pharma partners
Merck, Novartis and BridgeBio had each paid for access to the platform.

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People Involved

KM
Karen Massey
Chief executive officer of argenx
Leading the acquisition and integration
CP
Cameron Pye
Chief executive officer and co-founder of Unnatural Products
Will lead the Santa Cruz peptide discovery team after closing
JS
Joshua Schwochert
Co-founder of Unnatural Products
Co-founder of the acquired company
SL
Scott Lokey
Professor at UC Santa Cruz; founder's academic mentor
Not part of the transaction

Organizations Involved

argenx
argenx
Biopharmaceutical company
Acquirer

Netherlands-based immunology company whose flagship antibody drug Vyvgart generated $4.5 billion in net sales from January through September 2026.
UP
Unnatural Products
Biotechnology company
Being acquired

Santa Cruz company that engineers synthetic macrocyclic peptides using machine learning, parallel synthesis and screening.
Merck & Co.
Merck & Co.
Pharmaceutical company
Prior collaborator

Paid up to $220 million in January 2024 for a macrocyclic peptide collaboration with Unnatural Products.
Novartis Pharmaceuticals
Novartis Pharmaceuticals
Pharmaceutical company
Prior collaborator

Signed a February 2026 deal with up to $100 million upfront and more than $1.7 billion in later milestones.

Timeline

2016 November 2026

5 events Latest: Yesterday
Tap a bar to jump to that date

  1. argenx agrees to buy Unnatural Products

    Latest Acquisition

    argenx will pay $550 million upfront, with up to $595 million more in milestones.

  2. Novartis signs on

    Deal

    Novartis commits up to $100 million upfront plus more than $1.7 billion in later milestones.

  3. argenx signs collaboration

    Deal

    argenx takes an exclusive option and a minority stake, with up to $1.5 billion in milestones.

  4. Merck pays for access

    Deal

    Merck signs a macrocyclic peptide collaboration worth up to $220 million.

  5. Unnatural Products founded

    Founding

    Cameron Pye and Joshua Schwochert start the company in Scott Lokey's UC Santa Cruz lab.

Scenarios

1

Deal closes before the end of 2026

Likely Resolves by End of 2026

Discussed by: argenx and Unnatural Products, in their joint announcement

Both boards have approved the purchase, and the companies expect it to close before the end of the year, subject to customary conditions. If it does, argenx takes full control of the Santa Cruz team and its peptide discovery work.

2

argenx names a macrocyclic peptide development candidate

Possible Resolves by End of 2027

Discussed by: Leerink Partners analyst Thomas Smith, who called the deal longer-term strategic value

The purchase is a bet on future pipeline, not near-term revenue. If the platform produces a molecule worth advancing, argenx would disclose a named development candidate aimed at an immune-mediated disease. That would be the first public proof the chemistry works inside argenx.

3

Merck, Novartis and BridgeBio collaborations survive the sale

Uncertain Resolves by Q2 2027

Discussed by: Small Molecule News, which noted argenx did not say whether the agreements continue

Three companies had paid for access to the platform one target at a time. Whether those deals carry over after argenx takes ownership is unresolved. A public confirmation from any of them would settle it.

4

An oral peptide from the platform reaches human trials

Unlikely Resolves by End of 2029

Discussed by: Industry analysts tracking the shift toward oral biologics

The point of the chemistry is a pill that hits targets usually reserved for injected drugs. A clinical trial of a macrocyclic peptide derived from the platform would be the clearest test of that premise. It is a multi-year path.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2020–2023

Macrocyclic peptides reach the market (2020–2023)

The Food and Drug Administration approved a handful of macrocyclic peptide therapies. Rhythm Pharmaceuticals' Imcivree was cleared in 2020 for certain genetic forms of obesity. Aurinia's Lupkynis became the first oral medicine for adults with active lupus nephritis in 2021. UCB's Zilbrysq followed in 2023 for generalized myasthenia gravis.

Then

The approvals showed the modality could clear regulatory review and reach patients.

Now

They gave drugmakers a template for oral peptides in immunology, the space argenx now targets.

Why this matters now

argenx's own Vyvgart treats generalized myasthenia gravis, one of the diseases where an oral peptide has already been approved.

January 2024 – February 2026

Big pharma rents the platform (2024–2026)

Merck paid up to $220 million in January 2024 for a macrocyclic peptide collaboration. Novartis followed in February 2026 with up to $100 million upfront and more than $1.7 billion in later milestones. BridgeBio exercised an option to license macrocyclic therapeutics for rare disease and oncology.

Then

Unnatural Products collected partnership revenue without giving up ownership.

Now

The deals validated the chemistry and set up a competitive situation that ended with argenx buying the company outright.

Why this matters now

argenx paid $550 million in cash to own what three other companies had been renting one target at a time.

Sources

(10)
+4
BioPharma Dive DLA Piper Latham & Watkins Endpoints News Small Molecule News Santa Cruz Works Investing.com SectorFrame Dealroom.co Peptide Wire