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Agenus (AGEN) Sharpens Focus on Drug Development Programs
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We issued an updated report on Agenus Inc. (AGEN - Free Report) on Apr 4.
Agenus is an immuno-oncology company focused on the discovery and development of checkpoint modulators, vaccines and adjuvants for the treatment of cancer.
Agneus’ share price shows that the company has underperformed the Zacks classified Medical - Biomedical and Genetics industry year to date. The stock has declined 13.6% compared with industry’s gain of 3.3%.
Agenus has collaboration agreements with a number of companies, which not only provide it with funds in the form of upfront and milestone payments and future royalties, but also validate the company’s proprietary product platform. Agenus has formed collaborations with Merck & Co., Inc. (MRK - Free Report) and Incyte Corporation (INCY - Free Report) to discover and develop multiple checkpoint antibodies.
In Feb 2017, Agneus and Incyte amended the agreement. The amended agreement converts the ongoing GITR and OX40 antibody programs from co-funded development and profit-sharing arrangements to royalty-bearing programs. Per the agreement, Incyte will be responsible for funding and conducting global development and commercialization. When any of the two candidates from either of these two programs are approved, Agenus would be entitled to receive 15% royalties on global net sales of each approved product.
Following the amended agreement, Agenus received accelerated milestone payments of $20 million from Incyte related to the clinical development of INCAGN1876 (anti-GITR agonist) and INCAGN1949 (anti-OX40 agonist). Across all programs in the collaboration, Agenus will be eligible to receive up to a total of $510 million for future potential development, regulatory and commercial milestones.
The company’s collaboration agreements with players like Incyte and Merck not only validate its technology platforms but also provide the company with funds.
Notably, we are encouraged by Agenus’ efforts in developing Prophage vaccine for glioblastoma multiforme. It is also exploring different options to advance the Prophage vaccine into a phase III study in newly-diagnosed GBM either alone or in collaboration with a third party. Moreover, the company is looking for partners to fund studies with plans of retaining commercialization rights in the U.S.
In Mar 2017, the company undertook certain restructuring activities in order to cut costs and focus on developing key product candidates. Moving ahead, Agenus plans to close its Basel site and consolidate key functions in Cambridge, UK and Lexington, MA. The move will result in the elimination of 50 positions over the next six months. Further, the company will transition or consolidate certain key management positions, with the objective of streamlining leadership and reducing costs.
However, Agenus has no approved product in its portfolio. With only a few candidates in mid-stages of development, including Prophage Series vaccine and a number of QS-21 Stimulon-containing vaccine candidates, the company is still a few years away from bringing a product to market. Any hiccup in the development process of these candidates may weigh heavily on the stock.
Agenus is highly dependent on its partners for the development of its candidates.
Agenus currently carries a Zacks Rank #3 (Buy). Another better ranked stock in the health care sector includes Heska Corporation which carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Heska’s earnings estimates moved up from $1.53 to $1.65 for 2017 and from $1.90 to $2.01 for 2018, over the last 30 days. The company posted a positive earnings surprise in all of the last four quarters, with an average beat of 291.54%. Its share price increased 47.9% year to date.
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Agenus (AGEN) Sharpens Focus on Drug Development Programs
We issued an updated report on Agenus Inc. (AGEN - Free Report) on Apr 4.
Agenus is an immuno-oncology company focused on the discovery and development of checkpoint modulators, vaccines and adjuvants for the treatment of cancer.
Agneus’ share price shows that the company has underperformed the Zacks classified Medical - Biomedical and Genetics industry year to date. The stock has declined 13.6% compared with industry’s gain of 3.3%.
Agenus has collaboration agreements with a number of companies, which not only provide it with funds in the form of upfront and milestone payments and future royalties, but also validate the company’s proprietary product platform. Agenus has formed collaborations with Merck & Co., Inc. (MRK - Free Report) and Incyte Corporation (INCY - Free Report) to discover and develop multiple checkpoint antibodies.
In Feb 2017, Agneus and Incyte amended the agreement. The amended agreement converts the ongoing GITR and OX40 antibody programs from co-funded development and profit-sharing arrangements to royalty-bearing programs. Per the agreement, Incyte will be responsible for funding and conducting global development and commercialization. When any of the two candidates from either of these two programs are approved, Agenus would be entitled to receive 15% royalties on global net sales of each approved product.
Following the amended agreement, Agenus received accelerated milestone payments of $20 million from Incyte related to the clinical development of INCAGN1876 (anti-GITR agonist) and INCAGN1949 (anti-OX40 agonist). Across all programs in the collaboration, Agenus will be eligible to receive up to a total of $510 million for future potential development, regulatory and commercial milestones.
The company’s collaboration agreements with players like Incyte and Merck not only validate its technology platforms but also provide the company with funds.
Notably, we are encouraged by Agenus’ efforts in developing Prophage vaccine for glioblastoma multiforme. It is also exploring different options to advance the Prophage vaccine into a phase III study in newly-diagnosed GBM either alone or in collaboration with a third party. Moreover, the company is looking for partners to fund studies with plans of retaining commercialization rights in the U.S.
In Mar 2017, the company undertook certain restructuring activities in order to cut costs and focus on developing key product candidates. Moving ahead, Agenus plans to close its Basel site and consolidate key functions in Cambridge, UK and Lexington, MA. The move will result in the elimination of 50 positions over the next six months. Further, the company will transition or consolidate certain key management positions, with the objective of streamlining leadership and reducing costs.
However, Agenus has no approved product in its portfolio. With only a few candidates in mid-stages of development, including Prophage Series vaccine and a number of QS-21 Stimulon-containing vaccine candidates, the company is still a few years away from bringing a product to market. Any hiccup in the development process of these candidates may weigh heavily on the stock.
Agenus is highly dependent on its partners for the development of its candidates.
Agenus Inc. Price and Consensus
Agenus Inc. Price and Consensus | Agenus Inc. Quote
Zacks Rank & Stocks to Consider
Agenus currently carries a Zacks Rank #3 (Buy). Another better ranked stock in the health care sector includes Heska Corporation which carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Heska’s earnings estimates moved up from $1.53 to $1.65 for 2017 and from $1.90 to $2.01 for 2018, over the last 30 days. The company posted a positive earnings surprise in all of the last four quarters, with an average beat of 291.54%. Its share price increased 47.9% year to date.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time? Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>