April 18, 2008
Knobias Clip Report (04-17-2008)
By admin
Submitted By Knobias ClipReport
AVAN: CEO Discusses Licensing & Development Agreement w/Pfizer for CDX-110
Shares of AVANT Immunotherapeutics, Inc. (AVAN) surged on Thursday after the Company announced a licensing and development agreement with Pfizer. Pfizer will be granted an exclusive worldwide license to a therapeutic cancer vaccine candidate, CDX-110, in Phase 2 development for the treatment of glioblastoma multiforme (GBM), the most common and aggressive form of primary brain cancer. This agreement also gives Pfizer exclusive rights to the use of EGFRvIII vaccines in other potential indications.
CDX-110, which has been granted both Fast Track and Orphan Drug designations by the FDA, is an investigational immunotherapy that targets the tumor-specific molecule EGFRvIII, a functional variant of the epidermal growth factor receptor (EGFR), which is a protein that has been well validated as a target for cancer therapy in certain tumor types. EGFRvIII is only expressed in cancer cells and not in normal tissue and is a transforming oncogene that can directly contribute to cancer cell growth, as it does in about 40 percent of GBM tumors.
Pfizer will make an upfront payment to AVANT of $40 million and will make a $10 million equity investment in AVANT. Pfizer will fund all development costs for these programs. AVANT is also eligible to receive milestone payments exceeding $390 million for the successful development and commercialization of CDX-110 and additional EGFRvIII vaccine products, as well as double-digit royalties on any product sales.
The President and CEO of AVANT, Una S. Ryan, Ph.D., commented in a conference call last night, “We believe, in terms of total potential value, that this is one of the largest deals in the history of cancer immunotherapy. Beyond the financial value, the transaction brings a major pharmaceutical player with significant resources to the table. It also demonstrates our ability to capitalize on the company’s assets to further our promising pipeline, while retaining substantial future upside potential from CDX-110. Finally, it is a landmark deal demonstrating the continued progress that is being made in the cancer immunotherapy space.”
Needham maintained its Buy rating today for AVAN and raised its price target to $18 from $10. The firm believes the partnership with Pfizer makes strategic sense and adds validation to both the AVANT oncology platform and CDX-110 while decreasing the development and financial risks.
AVANT has three commercialized products, including Rotarix(R) (partnered with GSK) for the prevention of rotavirus infection and two human food safety vaccines for reducing salmonella infection in chickens and eggs. The Company also has several product candidates in its development pipeline including CDX-1307, a product based on its proprietary APC Targeting Technology(TM), which is in two Phase 1 clinical trials for patients with advanced pancreatic, bladder, breast and colon cancer; TP10, a complement inhibitor, in development for transplantation and other indications; and three candidates based on its oral, rapidly-protecting, single-dose and temperature-stable vaccine technology, including combination vaccines for travelers, the military and global health needs.
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