Five Prime Therapeutics In License Agreement with Seattle Genetics
February 19 2020 - 10:31AM
Dow Jones News
By Michael Dabaie
Five Prime Therapeutics Inc. said Wednesday it is in a global
license agreement with Seattle Genetics Inc. to develop and
commercialize novel antibody-drug conjugate therapies using
monoclonal antibodies developed by Five Prime.
Shares rose 9% to $4.80 in early trading.
Five Prime granted Seattle Genetics an exclusive worldwide
license to a family of monoclonal antibodies that are directed to a
single target and Seattle Genetics will be responsible for
research, development, manufacturing and commercialization of ADC
products based on these antibodies.
For the multi-product deal, Five Prime will receive a $5 million
upfront payment and is eligible to receive progress-dependent
development and regulatory milestone payments as well as cumulative
commercial milestone payments. Cumulative milestones may reach up
to $295 million for the first ADC product developed and
commercialized, Five Prime said.
Five Prime said it will additionally receive tiered mid-single
digit royalties on net product sales.
On Tuesday, Five Prime said that Bristol-Myers Squibb informed
the company that randomized Phase 2 trial testing of the
combination of cabiralizumab with Opdivo with and without
chemotherapy in patients with advanced pancreatic cancer didn't
meet its primary endpoint. Five Prime said Bristol-Myers has no
near-term plans for additional sponsored development of
cabiralizumab, but will continue to support the evaluation of
cabiralizumab in select, ongoing investigator-sponsored trials and
may continue to assess future development opportunities.
Wedbush lowered the stock to neutral from outperform and cut its
price target to $5 from $12 a share on the announcement the
pancreatic cancer study didn't meet its primary endpoint.
Given that Bristol-Myers Squibb will no longer directly support
development of cabiralizumab, "we now see little to no value in the
asset and are removing the program from our model," Wedbush
said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
February 19, 2020 10:16 ET (15:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Five Prime Therapeutics (NASDAQ:FPRX)
Historical Stock Chart
From Mar 2024 to Apr 2024
Five Prime Therapeutics (NASDAQ:FPRX)
Historical Stock Chart
From Apr 2023 to Apr 2024
