Bayer (BAYRY) Partners Twist Bioscience for Drug Discovery
Bayer AG BAYRY entered into an antibody discovery, option and license agreement with Twist Bioscience Corporation TWST.
Twist Bioscience Corporation owns a collection of synthetic antibody libraries that harness innovative structural and developability features to cover a wide range of antibody drug targets.
Per the terms of the agreement, Twist will receive payments connected with the initiation of research and will also be eligible to receive fees associated with research activities. The antibody leads discovered under the collaboration that enters clinical development will qualify for certain success-based clinical and commercial milestone payments as well as royalties from product sales.
Twist will be eligible to receive up to $188 million in clinical and commercial milestone payments plus royalties in total. In lieu, Bayer will receive exclusive rights to license the antibodies for commercialization in all global territories.
Bayer partnered with Twist Bioscience as it complements its strategy to advance breakthrough innovations based on new scientific approaches and platform technologies.
The collaboration will give Bayer access to Twist Bioscience’s pool of phage display libraries.
Shares of Bayer have gained 10% in the year so far compared with the industry’s growth of 3.8%.
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Bayer’s performance in 2023 so far has been disappointing, as the Crop Science division has been adversely impacted due to lower volumes and decreased prices for glyphosate-based products. Consequently, the annual outlook was lowered as the decline is expected to accelerate.
The high level of debt and ongoing litigations remain major overhangs on shares.
Nevertheless, new drugs like Nubeqa and Kerendia are performing well. The label expansion of existing drugs like Eylea should drive growth.
Bayer Aktiengesellschaft Price, Consensus and EPS Surprise
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Bayer has codeveloped Eylea with Regeneron REGN, which recently presented positive two-year (96 weeks) results from the pivotal PULSAR trial evaluating Eylea HD (aflibercept) injection 8 mg with 12- and 16-week dosing regimens compared with Eylea (aflibercept) ijection in patients with wet age-related macular degeneration (wAMD).
These two-year outcomes from PULSAR show that Eylea HD can deliver sustained and consistent visual and anatomic benefits among Eylea HD patients over two years.
Regeneron owns exclusive rights to Eylea and Eylea HD. Bayer has licensed exclusive marketing rights outside of the United States, where both companies equally share profits from sales of Eylea and Eylea HD following any regulatory approvals.
The FDA earlier approved aflibercept 8 mg for the treatment of patients with wAMD, diabetic macular edema and diabetic retinopathy under the brand name Eylea HD.
Bayer currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the healthcare industry is Eton Pharmaceuticals ETON, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Loss estimates for Eton for 2023 have narrowed to 10 cents from 31 cents in the past 60 days, while earnings estimates for 2024 are pegged at 26 cents per share.
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Regeneron Pharmaceuticals, Inc. (REGN) : Free Stock Analysis Report
Bayer Aktiengesellschaft (BAYRY) : Free Stock Analysis Report
Twist Bioscience Corporation (TWST) : Free Stock Analysis Report
Eton Pharmaceuticals, Inc. (ETON) : Free Stock Analysis Report
