) recently entered into a worldwide strategic collaboration
agreement with biotech company, CytomX Therapeutics, Inc., for
the development and commercialization of a new generation of
targeted antibody therapeutics.
The companies will work on the development of Probody-drug
conjugates (PDCs). The CytomX's Probody platform will be used for
the development of safer and more effective antibody-drug
conjugates (ADCs). The aim is to combine cytotoxic agents with
masked Probodies that are activated only in the disease
Pfizer will have exclusive rights to develop and commercialize
select PDCs. Both companies will conduct preclinical research
together with Pfizer assuming responsibility for the development
and potential commercialization of any selected PDCs.
The deal, worth $635 million, includes up-front, research
reimbursement and preclinical milestone payments of about $25
million and regulatory and sales milestone payments of about $610
million to CytomX. CytomX will also receive tiered double-digit
royalties on future sales.
We note that Pfizer has been pretty active on signing deals
for early-stage candidates. Earlier this year, the company had
announced a worldwide collaboration agreement with biopharma
company BIND Therapeutics for the development and
commercialization of a new class of highly selective targeted and
programmable therapeutics called Accurins.
Under this deal, BIND may receive about $50 million in the
form of up-front and development milestone payments and
approximately $160 million on the achievement of regulatory and
sales milestones along with tiered royalties on future sales.
Pfizer currently carries a Zacks Rank #3 (Hold). The company's
pipeline needs to deliver given the Lipitor loss of exclusivity
and the upcoming loss of exclusivity on additional products in
the next few years.
At present, companies like
) look well-positioned with all three being Zacks Rank #1 (Strong
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