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Aduro Gets Milestone Payment for ADU-214's IND Submission

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Aduro Biotech, Inc.ADRO announced that it has received a milestone payment from Janssen Biotech, Inc., a Johnson & Johnson JNJ company, for submitting an Investigational New Drug (IND) application for ADU-214 for the treatment of non-small cell lung cancer.

A phase I study is expected to be initiated by year end.

We note that Aduro has a collaboration agreement with Janssen Biotech. Under the terms of the agreement, Janssen was granted an exclusive, worldwide license to ADU-214 and other candidates engineered for the treatment of lung cancer and certain other cancers based on Aduro's novel live, attenuated, double-deleted (LADD) immunotherapy platform. In exchange, Aduro received an upfront payment of $30 million from Janssen and a milestone payment for submitting the IND.

In addition, Aduro is entitled to receive up to $786.5 million as future development, regulatory and commercialization milestone payments. The company is also entitled to receive royalties in the range of high single digits to low teens from commercial sales of the products upon approval.

Meanwhile, Aduro continues to progress on its pipeline. Currently, the company is evaluating CRS-207 for the treatment of patients with mesothelioma and pancreatic cancer.

The company has orphan drug status for CRS-207 for the treatment of mesothelioma and for CRS-207 and GVAX Pancreas for the treatment of pancreatic cancer. The FDA also granted Breakthrough Therapy designation to CRS-207 in combination with GVAX Pancreas for the treatment of pancreatic cancer.

Aduro carries a Zacks Rank #4 (Sell). A couple of better-ranked stocks in the health care sector include Nexvet Biopharma Public Limited Company NVET and Anika Therapeutics Inc. ANIK , each sporting a Zacks Rank #1 (Strong Buy).

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JOHNSON & JOHNS (JNJ): Free Stock Analysis Report

ANIKA THERAPEUT (ANIK): Free Stock Analysis Report

ADURO BIOTECH (ADRO): Free Stock Analysis Report

NEXVET BIOPHARM (NVET): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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