Biotech Stock Abbvie can only Rise : here is why

Biotech-stocks-ILMN-BIIB-AMGN-640x360

In order to boost its pipeline, AbbVie Inc (ABBV) inked a collaboration agreement with Infinity Pharmaceuticals (INFI) to develop and commercialize the latter’s oncology candidate duvelisib (IPI-145). Infinity Pharma’s shares jumped over 44% following the announcement.

AbbVie will be making an upfront payment of $275 million to Infinity Pharma to jointly commercialize duvelisib in the U.S. and will share the potential profits or losses equally. The companies will also share the royalty obligation in the U.S. equally relating to duvelisib.

Outside the U.S., AbbVie will be solely responsible for the development and commercialization of duvelisib. Infinity Pharma will receive tiered double-digit royalties (23.5% to 30.5%) on net sales of duvelisib following approval.

Biotech Stock News

Apart from the upfront payment, Infinity Pharma is also eligible to receive additional payments of up to $530 million on duvelisib achieving certain development, regulatory and commercial milestones. The amount includes a payment of $405 million through the first commercial sale of duvelisib.

Duvelisib is currently being developed in the phase III DUO study for the treatment of patients suffering from chronic lymphocytic leukemia (CLL) and in the phase II DYNAMO program for the treatment of indolent non-Hodgkin lymphoma (iNHL). The candidate is also under development in several other studies. As per the agreement, AbbVie and Infinity Pharma will be initiating several phase II and phase III studies on duvelisib in hematologic malignancies in the next several years.

The second pact struck by AbbVie is a research and development (R&D) agreement with Calico Life Sciences to jointly discover and develop candidates to treat age-related diseases including neurodegeneration and cancer.

Biotech News Video

Watch this video for more “Biotech” news.

[grabpress_video guid=62c4a5774f3266964d11a28ba963bd81ebc72453 embed_id=2151917]

Biotech Financial News

As part of the deal, both AbbVie and Calico will be funding up to $250 million each initially and may also contribute another $500 million each later. Calico will be responsible for the early R&D programs for the first five years and will continue to advance the programs through phase IIa over a ten-year period. AbbVie on the other hand will support Calico in early R&D stages and will have the option to manage late-stage development and commercial activities. The companies will be sharing costs and profits equally.

Thanks for visiting the TechNews.org website. Be sure to catch all BioTech financial news, bookmark us and check all the videos and news articles regarding Biotech business news.

Signup for free to be the first to receive exclusive free links. Now in your mailbox!
Join over 15,000 subscribers
Send me links

Your information will not be shared to anyone