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OPKO Health (OPK) Forms JV, Establishes Presence in China
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OPKO Health, Inc. (OPK - Free Report) recently formed a joint venture (JV) with LeaderMed Health Group Limited to develop, manufacture and commercialize two of OPKO Health’s clinical-stage, long-acting drug products in Greater China and eight more Asian regions. Per the agreement, OPKO Health will grant JV exclusive rights for OPK88003, which is an oxyntomodulin analog being created for treating obesity and diabetes, and Factor VIIa-CTP — a novel long-acting coagulation factor that is being built to treat hemophilia.
It is worth mentioning that the aforementioned exclusive rights will be in exchange for a 47% ownership interest in the JV. Apart from this, OPKO Health will get an upfront payment of $1 million and receive the reimbursement for clinical trial material and technical support offered to the JV.
This JV is likely to strengthen OPKO Health’s global footprint along with establishing a presence in China.
More on the News
Per management, the JV will enable OPKO Health to expand the global availability of two of its novel long-acting development products through an alliance with collaborators having substantial expertise and deep knowledge of the Asian biopharmaceutical opportunity.
Image Source: Zacks Investment Research
LeaderMed will fund the JV’s operations, development and commercialization efforts, while investing (along with its syndicate partners) $11 million in the beginning in exchange of 53% ownership interest. With respect to all other geographies, OPKO Health is going to hold on to the full rights to oxyntomodulin and Factor VIIa-CTP.
Market Prospects
Per a report by Grand View Research, the global pharmaceutical market was worth $405.52 billion in 2020 and is anticipated to witness a CAGR of 11.34% during the forecast period (2021-2028). Hence, this joint venture is a well-timed one for OPKO Health.
Recent Developments
In August, OPKO Health’s subsidiary, BioReference Laboratories, Inc., announced the buyout of the U.S. Ariosa centralized laboratory prenatal testing business from Roche Holding AG (RHHBY - Free Report) . It is important to note here that Ariosa’s non-invasive prenatal screening (NIPS) test — the Harmony Prenatal Test — is one of the most studied tests used with respect to prenatal screening.
In July, the company inked an exclusive worldwide agreement with privately held CAMP4 Therapeutics Corporation (“CAMP4”). The licencing agreement is aimed at developing, manufacturing and commercializing therapeutics using the former’s AntagoNAT technology.
Price Performance
Shares of the Zacks Rank #4 (Sell) company have gained 9.5% in the past year compared with the industry’s growth of 14.1%.
Image: Bigstock
OPKO Health (OPK) Forms JV, Establishes Presence in China
OPKO Health, Inc. (OPK - Free Report) recently formed a joint venture (JV) with LeaderMed Health Group Limited to develop, manufacture and commercialize two of OPKO Health’s clinical-stage, long-acting drug products in Greater China and eight more Asian regions. Per the agreement, OPKO Health will grant JV exclusive rights for OPK88003, which is an oxyntomodulin analog being created for treating obesity and diabetes, and Factor VIIa-CTP — a novel long-acting coagulation factor that is being built to treat hemophilia.
It is worth mentioning that the aforementioned exclusive rights will be in exchange for a 47% ownership interest in the JV. Apart from this, OPKO Health will get an upfront payment of $1 million and receive the reimbursement for clinical trial material and technical support offered to the JV.
This JV is likely to strengthen OPKO Health’s global footprint along with establishing a presence in China.
More on the News
Per management, the JV will enable OPKO Health to expand the global availability of two of its novel long-acting development products through an alliance with collaborators having substantial expertise and deep knowledge of the Asian biopharmaceutical opportunity.
Image Source: Zacks Investment Research
LeaderMed will fund the JV’s operations, development and commercialization efforts, while investing (along with its syndicate partners) $11 million in the beginning in exchange of 53% ownership interest. With respect to all other geographies, OPKO Health is going to hold on to the full rights to oxyntomodulin and Factor VIIa-CTP.
Market Prospects
Per a report by Grand View Research, the global pharmaceutical market was worth $405.52 billion in 2020 and is anticipated to witness a CAGR of 11.34% during the forecast period (2021-2028). Hence, this joint venture is a well-timed one for OPKO Health.
Recent Developments
In August, OPKO Health’s subsidiary, BioReference Laboratories, Inc., announced the buyout of the U.S. Ariosa centralized laboratory prenatal testing business from Roche Holding AG (RHHBY - Free Report) . It is important to note here that Ariosa’s non-invasive prenatal screening (NIPS) test — the Harmony Prenatal Test — is one of the most studied tests used with respect to prenatal screening.
In July, the company inked an exclusive worldwide agreement with privately held CAMP4 Therapeutics Corporation (“CAMP4”). The licencing agreement is aimed at developing, manufacturing and commercializing therapeutics using the former’s AntagoNAT technology.
Price Performance
Shares of the Zacks Rank #4 (Sell) company have gained 9.5% in the past year compared with the industry’s growth of 14.1%.
Key Picks
Some better-ranked stocks from the broader medical space are Henry Schein, Inc. (HSIC - Free Report) and Envista Holdings Corporation (NVST - Free Report) , both currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Henry Schein’s long-term earnings growth rate is estimated at 13.9%.
Envista Holdings’ long-term earnings growth rate is estimated at 27.4%.