Amgen Inc. ( AMGN Quick Quote AMGN - Free Report) announced that it has entered into a research collaboration agreement with Massachusetts-based private biotech Generate Biomedicines to discover and develop protein therapeutics for five clinical targets in several therapeutic areas and multiple modalities.
Under the deal, Generate’s machine-learning-enabled technology generative biology platform will be leveraged to discover and create novel protein sequences with optimal therapeutic properties.
Per the deal for the five initial programs, Amgen will make an upfront payment of $50 million to Generate Biomedicines. Amgen will pay around $370 million in future milestones as well as royalties up to low double digits for each of the five programs. Amgen will have the option to nominate up to five more programs at additional cost.
Shares of Amgen have lost 5.6% in the past year compared with the
industry’s decline of 30%. Image Source: Zacks Investment Research
Amgen remains focused on driving growth and boosting its pipeline through deals and acquisitions.
Amgen entered into an agreement with Japanese pharmaceutical company, Kyowa Kirin Co, to jointly develop and commercialize KHK4083 for the treatment of atopic dermatitis (“AD”) in June 2021. KHK4083 is a potential first-in-class anti-OX40 fully-human monoclonal antibody being developed by Kyowa Kirin for AD and other potential autoimmune diseases.
In October 2021, Amgen signed a strategic collaboration with Neumora Therapeutics to advance neuroscience discovery. The companies will collaborate on programs by applying Neumora's proprietary precision neuroscience platform to insights generated by Amgen's deCODE genetics and human data research capabilities to advance innovative medicines for brain disease.
Also, in 2021, Amgen acquired Five Prime Therapeutics, which added late-stage cancer candidate bemarituzumab to Amgen’s pipeline. Amgen completed the acquisition of small private cancer biotech Teneobio in October 2021. The acquisition included Teneobio's proprietary bispecific and multispecific antibody technologies. The acquisition added TNB-585, a phase I bispecific T cell-engager, for the treatment of metastatic castrate-resistant prostate cancer to Amgen’s pipeline.
Zacks Rank & Stocks to Consider
Amgen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the drug/biotech sector include
PaciraBioSciences, Inc. ( PCRX Quick Quote PCRX - Free Report) , Precision BioSciences, Inc. ( DTIL Quick Quote DTIL - Free Report) and AnaptysBio, Inc. ( ANAB Quick Quote ANAB - Free Report) , all sporting a Zacks Rank #1 (Strong Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here
Pacira’s earnings estimates have been revised 5.7% upward for 2022 over the past 60 days.
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