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Celldex Therapeutics, Inc. Message Board

  • raysfrom98 raysfrom98 May 28, 2014 11:30 AM Flag

    BMY is very busy making deals.

    ""Bristol-Myers Squibb Company (BMY) entered into a strategic global research collaboration and license deal with biotech company, CytomX Therapeutics, for the discovery, development and commercialization of new drugs against multiple immuno-oncology targets with the help of the latter’s Probody platform.

    Probodies (monoclonalantibodies) are activated only in the cancer microenvironment and spare healthy tissue. Bristol-Myers will have exclusive rights to develop and commercialize Probodies for up to four cancer targets.

    Under the terms of the immuno-oncology deal, Bristol-Myers will shell out $50 million as up-front payment to CytomX. Moreover, the biopharma major will cover the research expenses over the duration of the research period. The deal also includes preclinical milestone payments (amount of which was not specified) in addition to regulatory and sales milestone payments of about $298 million per target to CytomX. CytomX will also receive tiered mid-single-digit to low-double-digit royalties on future sales.""

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    • My impression is that these are very different kinds of deals:

      Today's give exclusive rights to BMY. With CLDX, this is only a single "Collaboration", giving CLDX the right to partner Varli with other companies and compounds. So, while they cannot partner with Pd! elsewhere, I believe they could partner with MRK or Roche on PdL1.

      What's more, CLDX won elimination and/or reduction in other financial obligations to MEDX/BMY which appear meaningful, albeit they have not been quantified to shareholders in full.

      Sentiment: Strong Buy

      • 2 Replies to goforitmedx
      • Very different deals indeed.

        CLDX and BMY agreed to work together for one trial with their two existing drugs.
        Now they are essentially hiring CytomX to go out and find new drugs in this same space.

        You will not this type of deal done with CLDX because CLDX does not have a unique drug or novel target discovery platform. All of their products and targets(except the very suspect dendritic cell antibodies) have been acuired from outside the organization.

      • You are correct. Based on the information in the press release about BMY's deal with CytomX, BMY has exclusively licensed the treatment platform from CytomX for up to four targets. CytomX has given up significant future revenue should the treatment platform reach commercialization under BMY's direction; the company gave up that future revenue in exchange for an upfront payment, future milestone payments, and a small royalty on future sales.

        Celldex's agreement with BMY for Varli is NOT a licensing agreement.

        The two deals are in entirely different categories.

        Sentiment: Strong Buy

    • What are your feelings on this? positive for CLDX ?

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