In a strategic shift, Bristol Myers Squibb (NYSE:BMY) has decided to terminate its License Agreement with Agenus Inc . (NASDAQ:AGEN) for the cancer drug AGEN1777. Agenus, a biotechnology firm specializing in immuno-oncology products, disclosed today that the partnership, originally forged in May 2021, will conclude effective January 26, 2025.
The termination follows BMS's broader realignment of its development pipeline, which affects other licensed products as well. This decision comes despite AGEN1777 showing promising safety data and signs of clinical activity in early trials. Agenus received an initial $200 million non-refundable payment upon signing the agreement and subsequent milestone payments totaling $45 million.
As part of the termination arrangement, Agenus will receive an exclusive, royalty-free license to all know-how and patent rights related to AGEN1777 that arose from the collaboration. BMS will also transfer all regulatory filings and approvals associated with the drug to Agenus, which will not face any penalties due to the early termination of the agreement.
Agenus plans to evaluate the future development and potential relicensing of AGEN1777, considering its integration with the company's existing portfolio of immuno-oncology agents. The company retains the right to continue development or to enter into a new licensing agreement in the future.
The original agreement and its terms were filed with the SEC on June 30, 2021, as part of Agenus's Quarterly Report on Form 10-Q. This announcement is based on a press release statement.
In other recent news, Agenus Inc. has seen a series of stock rating adjustments following the FDA's advice against accelerated approval for their BOT+BAL treatment for microsatellite stable colorectal cancer. Jefferies downgraded the stock from Buy to Hold, but raised the price target to $7, while William Blair and Baird both downgraded Agenus stock, citing regulatory challenges and financial constraints. Despite these downgrades, H.C. Wainwright maintained its Buy rating for Agenus, following encouraging study results for BOT/BAL.
In addition, the company secured a $100 million financing deal with Ligand Pharmaceuticals, potentially increasing to $200 million, after reporting a Q1 revenue of $28 million and a net loss of $63.5 million. This financial boost is expected to aid in the continued development of the company's drug candidates.
Agenus also announced the appointment of Dr. Jennifer Buell to its Board of Directors, adding her 27 years of biopharmaceutical industry experience to the company. Agenus has scheduled a crucial meeting with the FDA to discuss the development of its BOT/BAL combination cancer therapy. These developments are part of the company's recent activities in the biopharmaceutical industry.
InvestingPro Insights
Amidst the strategic realignment by Bristol Myers Squibb and the termination of their agreement with Agenus, it's valuable to consider the current financial health and market sentiment surrounding Agenus Inc. According to InvestingPro data, Agenus has a market capitalization of $118.02 million and has experienced a significant revenue growth of nearly 70% over the last twelve months as of Q1 2024. Despite this growth, the company's gross profit margin stands at a negative 37.72%, indicating challenges in profitability.
InvestingPro Tips highlight that Agenus is quickly burning through cash and has a stock that trades with high volatility. Moreover, the company's short-term obligations exceed its liquid assets, which could pose a risk for investors. Potential investors should also note that analysts do not anticipate the company will be profitable this year, and the stock has fared poorly over the last month with a price total return of -58.19%. For those interested in a deeper analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/AGEN, which could provide further insights into Agenus's financial position and stock performance.
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