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Exelixis (EXEL) Expands Oncology Collaboration With Invenra

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Exelixis, Inc. (EXEL - Free Report) and partner Invenra have expanded their discovery and licensing collaboration to include an additional 20 oncology targets.

We remind investors that both the companies had entered into a collaboration agreement in May 2018 to discover and develop mono-specific and multi-specific antibodies using Invenra’s antibody and B-Body platforms. Thereafter, the companies expanded their collaboration in October 2019 to generate additional programs.

Per the terms of this latest expanded partnership, Exelixis will pay Invenra an upfront fee of $15.0 million along with additional fees and funding for the option to nominate up to 20 additional targets in oncology. Invenra will also be eligible for development, regulatory, and commercial milestones, as well as tiered royalties on net sales of any approved products.

On the other hand, Exelixis will own all antibody sequences discovered from the collaboration for all therapeutic uses in oncology and any other disease areas. The expanded collaboration also provides Exelixis with an option to obtain development and commercialization rights to certain of Invenra’s future internal pipeline programs, in exchange for an opt-in fee.

Exelixis’ shares have declined 7.9% in the year so far against the industry’s growth of 0.4%.

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It is looking to build a differentiated next-generation pipeline in oncology through strategic collaborations.

In June 2021, Exelixis announced a collaboration and supply agreement with Bristol Myers Squibb (BMY - Free Report) for STELLAR-002, a new phase Ib study evaluating XL092 in combination with immuno-oncology therapies in advanced solid tumors. The objective of the study is to evaluate the safety, tolerability and efficacy of XL092 in combination with Bristol Myers’ Opdivo (nivolumab); Opdivo and Yervoy (ipilimumab); and Opdivo and bempegaldesleukin (an investigational CD122-preferential IL-2–pathway agonist). 

Exelixis’ second-quarter results were encouraging with beat on both counts.  The approval of lead drug Cabometyx in combination with immuno-oncology drug, Opdivo, for advanced (renal cell carcinoma) RCC has boosted sales. The pipeline progress has been impressive too.

The successful development of additional candidates will reduce dependence on Cabometyx.

Exelixis currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stock in the healthcare sector are Regeneron Corporation (REGN - Free Report) and Repligen Corporation (RGEN - Free Report) which currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings estimates for Regeneron have moved up 34 cents for 2021 in the past 30 days.  The stock is up 30.1% year to date.

Earnings estimates for Repligen have moved up 50 cents for 2021 in the past 30 days.  The stock is up 33.6% year to date.

 

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