Agenus Inc.’s AGEN shares were up 4% on the extension of its existing collaboration and license agreement with Merck MRK for the discovery and development of therapeutic antibodies to Merck’s proprietary immune checkpoints for the treatment of cancer. Merck announced that it has extended the collaborative research term to Apr 2016.
We remind investors that the deal between the companies was struck in Apr 2014. As per the terms of the original agreement, Agenus had agreed to discover and optimize fully human antibodies using its Retrocyte Display platform against two undisclosed Merck checkpoint targets. Merck on its part took over the responsibility of further developing and commercializing the candidates under the collaboration. In exchange, Agenus stands to receive about $100 million in milestone payments plus royalties on worldwide product sales.
Agenus has been quite active on the deal making front lately. Earlier in the year, the company inked a global agreement with Incyte Corp. INCY for the development of immuno-therapeutics utilizing Agenus’ proprietary Retrocyte Display antibody discovery platform and Incyte’s expertise in small molecule discovery. The collaboration is initially focused on the development of checkpoint modulator antibodies directed against GITR, OX40, LAG-3 and TIM-3. The first studies are expected to commence in 2016.
In April, Agenus expanded its antibody discovery platform through the acquisition of key antibody assets from Celexion including the latter’s SECANT yeast display platform for the rapid generation of novel, full-length human monoclonal antibodies.
We are encouraged by Agenus’ collaboration efforts with other companies.
Agenus currently carries a Zacks Rank #3 (Hold). Actelion Ltd. ALIOF is a better-ranked stock in the health care sector carrying a Zacks Rank #1 (Strong Buy).
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