BIND Therapeutics, Inc. announced the completion of its one and a half year old agreement with Amgen Inc. (AMGN - Free Report) . In Jan 2013, the two companies had entered into a one-year collaboration agreement to optimize a specific therapeutic payload from Amgen, which was later extended by another six months to complete the research plan.
BIND Therapeutics and Amgen collaborated to develop a nanomedicine for treating solid cancer tumors utilizing BIND’s platform for targeted and programmable nanomedicines and Amgen’s unrevealed proprietary cancer compound. Moreover, BIND Therapeutics held rights to get a license from Amgen for the development, manufacture and commercialization of Accurins (the former’s programmable therapeutics) containing Amgen’s therapeutic payload if Amgen failed to exercise its option.
BIND Therapeutics notified that results from the research were not convincing enough to proceed forward. Following the completion of the agreement the companies will not exercise their options to develop an Accurin incorporating the Amgen therapeutic payload.
The news comes as a huge disappointment for the company. Although BIND Therapeutics mentioned that it will continue to develop its Accurin platform, we expect the shares of the company to go down significantly on the news.
BIND Therapeutics still has collaboration agreements with companies like AstraZeneca (AZN - Free Report) to develop Accurins based on therapeutic payloads. Termination or failure of those agreements will be damaging for the stock.
The lead pipeline candidate at BIND Therapeutics is BIND-014, an Accurin. The candidate is undergoing phase II studies for the treatment of non-small cell lung cancer and metastatic castrate-resistant prostate cancer.
BIND Therapeutics presently carries a Zacks Rank #4 (Sell). The Medicines Company (MDCO - Free Report) is a better-ranked stock with a Zacks Rank #1 (Strong Buy).