) reached a new 52-week high of $35.32 on December 28, 2012,
shortly after amending its development and license agreement with
Millennium Pharmaceuticals, a subsidiary of
Takeda Pharmaceutical Company Limited
Infinity Pharma's closing price as on December 28 was $34.72,
which represented a solid year-to-date return of 303.7%. Average
volume of shares traded over the last 3 months stands at
approximately 1.1 million.
Amended Agreement in Focus
As per the initial agreement, which was signed in July 2010,
the companies were not allowed to research, develop or
commercialize product candidates that target PI3K-delta and/or
PI3K-gamma except those covered by the agreement.
The amended agreement between the companies allows Infinity
Pharma to retain full worldwide rights to IPI-145 along with
worldwide rights to any future candidate that targets PI3K-delta
The inclusion of additional candidates under the agreement
should bring in additional revenues to Infinity Pharma on
successful development and commercialization.
Moreover, Infinity Pharma made a one-time payment of $15
million to Millennium Pharma, in exchange of which the latter
surrendered its option for an equal profit and loss sharing
arrangement in the US for any of Infinity's PI3K inhibitors,
including IPI-145. Millennium Pharma also gave up its right to
participate in up to 30% of the detailing effort in the US for
any of Infinity Pharma's PI3K inhibitors.
Based on 2012 sales estimates, Infinity Pharma is trading at a
price-to-sales ratio (P/S) of 16.0x, a huge premium compared to
its peer group average of 1.3x.
About the Company
Infinity Pharma is an innovative drug discovery and
development company. The company is currently focusing on the
advancement of IPI-145 and other PI3K candidates. Infinity Pharma
has a market capitalization of roughly $1.58 billion.
We currently have a Neutral recommendation on Infinity Pharma.
The stock carries a Zacks #2 Rank (Buy). However other pharma
) carry a Zacks #1 Rank (Strong Buy).
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INFINITY PHARMA (INFI): Free Stock Analysis
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