) recently collaborated with Sutro Biopharma for the development
of novel antibody drug conjugates (ADCs) and bispecific
antibodies for two undisclosed targets and for the manufacturing
of a proprietary Celgene antibody.
As per the terms of the agreement Celgene will be making an
upfront payment to Sutro along with payments on the achievement
of research, development and regulatory milestones and an equity
investment in Celgene. The deal can well be worth over $500
million, depending on the success of the aforementioned programs.
Celgene will also be paying royalties on product sales.
By virtue of the collaboration, Sutro will design products and
use its proprietary, cell-free protein synthesis technology to
produce preclinical materials.
We note that Celgene have clinched several deals and
acquisitions in recent years. In April 2012 the company inked a
collaboration and licensing deal with Epizyme Inc, for the
discovery, development and commercialization of personalized
medicines for treating patients suffering from genetically
defined cancers by inhibiting histone methyltransferases (HMTs),
an important epigenetic target class.
Moreover, in March 2012, the company acquired Avila
Therapeutics. The acquisition has added AVL-292, developed for
treating cancer and autoimmune diseases, to the company's
We are impressed with Celgene's efforts to bolster its
pipeline by prudent acquisitions and deals.
We currently have a Neutral recommendation on Celgene. The
stock carries a Zacks #3 Rank (Hold) in the short run. Another
Acorda Therapeutics Inc.
) carries a Zacks #2 Rank (Buy) in the short run.
ACORDA THERAPT (ACOR): Free Stock Analysis
CELGENE CORP (CELG): Free Stock Analysis
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