FcRn Inhibitors to Treat Autoimmune Conditions

June 2020 (click here to download)

Many, but not all, autoimmune diseases are caused by the presence of antibodies against certain cells and tissues (“auto-antibodies”). These auto-antibodies bind to their targets and solicit the immune system to attack the cells and tissues to which they are bound.

A significant portion of auto-antibody-mediated autoimmune diseases are caused by immunoglobulin-G (aka IgG) auto-antibodies. Historical strategies to treat autoimmune diseases caused by IgGs have focused on the use of chronic steroids to mute the immune system, however, steroids are associated with a high side-effect burden. Another strategy that is effective, but inconvenient, is called plasmapheresis. Plasmapheresis is a semi-invasive procedure in which IgGs are externally filtered from the bloodstream.

The Manager, and others, have hypothesised that inhibition of FcRn (aka neonatal Fc receptor) might be effective in depleting IgG auto-antibodies, and in doing so might also ameliorate IgG-mediated auto-immune disease (see Exhibit A).

Exhibit A: How Targeting FcRn Depletes Autoantibodies

Source: Driehaus. Graphic sourced from Chadha, “Monoclonal Antibody Pharmacokinetics in Type 2 Diabetes Mellitus and Diabetic Nephropathy,” (2016) Molecular Drug Disposition.

On 26th May 2020, the first definitive results were released that confirm the Manager’s hypothesis. Phase 3 results were released from a randomised, controlled study evaluating the effect of FcRn inhibition versus placebo in patients with myasthenia gravis, a disease characterised by auto-antibodies that destroy neuro-muscular signalling. The results confirmed what we had previously believed: that FcRn inhibition would safely deplete IgG antibodies and lead to amelioration of disease.

Although substantial evidence already existed supporting the safety and effectiveness of FcRn inhibition, this first ever positive phase 3 result for an FcRn inhibitor paves the way for what the Manager expects to be a string of favourable, mid-to-late stage studies that support numerous approvals for the FcRn inhibitor class over the coming years.

There are three stand-alone companies that have leading FcRn inhibitors, and their aggregate market value is approximately $15b. The markets to be addressed by the FcRn class are numerous and the Manager expects the aggregate addressable market by the class to be VERY large (>$10bn; see Exhibit B below). The Manager has its opinions on which companies are best positioned for various scenarios, and it has expectations for how other treatment modalities will impact uptake of the FcRn class, but ultimately the Manager thinks all three will work and become real drugs. In this context, the Manager thinks there remains meaningful value to be unlocked as these molecules progress through clinical development and ultimately get to market.

Exhibit B: FcRn Inhibitors – Potential Addressable US Market

Source: Driehaus. Figures sourced from Yaron Werber (Cowen) Argenx Initiation Report, Sam Slutzy (LifeSci Advisors) Immunovant Initiation Report, Graig Suvannavejh (Goldman Sachs) Momenta Initiation Report.

Source: Alex Munns of Driehaus Capital Management LLC.

This information is not intended to provide investment advice. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell or hold any securities, market sectors, other investments or to adopt any investment strategy or strategies. You should assess your own investment needs based on your individual financial circumstances and investment objectives. This material is not intended to be relied upon as a forecast or research. The opinions expressed are those of Driehaus Capital Management LLC (“Driehaus”) as of June 2020 and are subject to change at any time due to changes in market or economic conditions. The information has not been updated since June 2020 and may not reflect recent market activity. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by Driehaus to be reliable and are not necessarily all inclusive. Driehaus does not guarantee the accuracy or completeness of this information. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.


This document is intended for use by professional financial advisers only. The distribution of VAM Funds and the offering of the shares may be restricted in certain jurisdictions. Private investors should contact their financial adviser for more details on any of the products featured. It is the responsibility of any person in possession of this document to inform themselves of, and to observe, all applicable laws and regulations of any relevant jurisdictions. Prospective applicants for shares should inform themselves as to the legal requirements and consequences of applying for, holding and disposing of shares and any applicable exchange control regulations and taxes in the countries of their respective citizenship, residence or domicile. Click for Important Information