Bayer AG ( () BAYRY Quick Quote BAYRY - Free Report) and Atara Biotherapeutics ( () have inked an exclusive worldwide license agreement for next-generation, mesothelin-directed CAR-T cell therapies for the treatment of solid tumors.in order to expand its oncology pipeline. The agreement includes the pipeline candidate ATA3271, a next generation allogeneic T-cell immunotherapy, and an autologous version — ATA2271 — for the treatment of high mesothelin-expressing tumors such as malignant pleural mesothelioma, as well as non-small-cell lung cancer. ATRA Quick Quote ATRA - Free Report)
Shares of the company have decreased 26% year to date against the
industry’s 6.6% growth.
The deal is part of Bayer's new strategy to speed up and support cell and gene therapy development. With this deal, Bayer plans to enter CAR-T cell therapy space and expand its oncology development pipeline with groundbreaking technology. Atara is an industry leader in allogeneic cell manufacturing processes and next-generation CAR-T technologies. The licensed technology will leverage Atara’s proprietary Epstein-Barr Virus T-cell platform combined with next generation CAR-T technologies targeting mesothelin to improve efficacy, persistence, safety and durability of response.
Per the agreement, Atara will lead investigational new drug (IND)-enabling studies and process development for ATA3271 while Bayer will be responsible for submitting the IND, and subsequent clinical development as well as commercialization. Atara will continue to be responsible for the ongoing ATA2271 phase I study, for which an IND filing has been accepted and a clinical trial has been initiated.
Atara will receive an upfront payment of $60 million and be eligible to receive up to $610 million upon achievement of certain milestones, as well as tiered royalties up to low double-digit percentage of net sales.
Zacks Rank & Stocks to Consider
Bayer currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the healthcare sector include
Aerpio Pharmaceuticals Ltd. ( ARPO Quick Quote ARPO - Free Report) and Aptose Biosciences Inc. ( APTO Quick Quote APTO - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
Aerpio’s loss per share estimates have narrowed from 15 cents to 14 cents for 2020 and from 63 cents to 57 cents for 2021 over the past 60 days.
Aptose’s loss per share estimates have narrowed from 77 cents to 69 cents for 2020 and from 85 cents to 81 cents for 2021 over the past 60 days.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases. Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>