Celgene Corp. (CELG) inked a deal with Zymeworks Inc. for the research, development and commercialization of bi-specific antibody therapeutics based on Zymeworks’ proprietary Azymetric platform.
As per the terms of the agreement, Celgene will be paying an initial upfront payment and will have the option to advance the candidates resulting from the deal through clinical development and subsequent commercialization.
In addition to the upfront payment, Zymeworks will receive an equity investment from Celgene. Zymeworks is also eligible to receive clinical, regulatory and commercial milestone payments of up to $164 million plus royalties on worldwide net sales of each of the successful therapeutic candidates.
Azymetric antibodies, which are manufactured using conventional monoclonal antibody, help to reduce drug development timelines significantly.
Celgene is not the only company to take an interest in Zymeworks’ proprietary Azymetric platform. Companies like Merck & Co., Inc. (MRK) also have a research and collaboration agreement with Zymeworks to access the Azymetric platform for the development of novel bi-specific antibody therapeutic candidates.
Meanwhile, Celgene is expecting 2015 to be a data rich year for the company. The company expects several data readouts and regulatory decisions this year. Positive outcomes from these events will drive growth at the company.
Celgene carries a Zacks Rank #1 (Strong Buy). Other well-ranked stocks in the healthcare sector include Regado Biosciences, Inc. (RGDO) and Alexion Pharmaceuticals, Inc. (ALXN). Both stocks carry a comparable rank.
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