bluebird Amends Collaboration Agreement with Celgene

Zacks

bluebird bio, Inc. BLUE announced that it has amended its existing global collaboration agreement with Celgene Corp. CELG.

The companies had originally entered into a collaboration agreement in 2013 aiming to apply gene therapy technology to genetically modify a patient’s own T cells to target and destroy cancer cells.

Recently, the collaboration has been amended and restated to focus on developing candidates targeting B-cell maturation antigen (BCMA) for a three-year term.

The companies will jointly work on the lead anti-BCMA candidate, bb2121. Enrolment for the phase I trial is expected to begin early 2016. The companies will also develop next-generation anti-BCMA product candidates.

As per the amended agreement, bluebird bio retains sole rights to develop all other chimeric antigen receptor (CAR) T cell programs developed by it, including the ongoing undisclosed preclinical programs in both solid tumors and hematologic malignancies.

Celgene is required to pay bluebird bio $25 million to develop the lead anti-BCMA product candidate through the phase I trial and develop next-generation anti-BCMA product candidates. bluebird will also be responsible for the development of all anti-BCMA product candidates through the completion of phase I studies.

Moreover, Celgene has an option to develop and commercialize each product candidate worldwide on a product-by-product basis within the anti-BCMA product program, while bluebird bio has the option to share development, promotion and profits of each candidate equally in the U.S.

In addition, bluebird bio is entitled to development and regulatory milestone payments as well as royalty payments on net sales.

bluebird bio has gained a strong partner in Celgene for the development of its lead candidate in the CAR T field, as Celgene is a leader in developing and commercializing therapies for multiple myeloma.

Meanwhile, bluebird bio is independently pursuing the development of a broad portfolio of novel immuno-oncology therapeutics.

The company is conducting a phase II/III clinical study (Starbeam) on its most advanced product candidate, Lenti-D, to evaluate its safety and efficacy in subjects with childhood cerebral adrenoleukodystrophy.

Currently, bluebird bio caries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Actelion Ltd. ALIOF and Gilead Sciences Inc. GILD. Both carry a Zacks Rank #1 (Strong Buy).

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