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REGN Expands Cancer Deal With CytomX for Bispecific Therapeutics
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Key Takeaways
REGN expanded its CytomX collaboration to develop conditionally activated bispecific cancer therapies.
REGN will lead development and commercialization; CytomX gets $37M for two newly selected targets.
REGN's expanded deal could generate up to about $4B in milestone payments plus tiered royalties.
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) expanded its licensing and collaboration agreement with clinical-stage, oncology-focused biopharmaceutical company CytomX Therapeutics, Inc. (CTMX - Free Report) .
Both companies have expanded their collaboration to develop conditionally activated bispecific cancer therapies that combine CytomX’s Probody therapeutic platform with Regeneron’s Veloci-Bi bispecific antibody technology.
Please note that the partnership, originally established in 2022, is focused on leveraging CytomX’s biologic masking technology to develop Regeneron’s investigational bispecific antibodies that remain inactive until selectively activated by proteases within the tumor microenvironment. This approach is designed to enhance the therapeutic window and reduce off-target toxicities of next-generation T-cell-engaging therapies, potentially expanding the reach of immunotherapy to tumor types that have historically shown limited responsiveness.
Financial Terms of the Expanded Agreement
Under the expanded agreement, the companies will continue collaborative discovery efforts to identify and validate conditionally active bispecific antibody candidates.
Regeneron will assume responsibility for preclinical and clinical development as well as commercialization activities.
CytomX will receive a $37 million target nomination payment for two newly selected targets, while Regeneron has the option to nominate up to six additional targets in the future.
The expanded collaboration carries the potential for up to approximately $4 billion in target nomination, development, regulatory, and commercial milestone payments. CytomX is also eligible to receive tiered royalties on global net sales of products developed under the agreement.
REGN’s Efforts to Diversify Its Portfolio
Regeneron’s decision to expand its partnership with CytomX reflects growing confidence in the potential of conditionally activated bispecific cancer therapies.
Shares inched up 2.7% following the news.
The expanded commitment signals continued investment in next-generation immunotherapies and highlights Regeneron’s strategy of leveraging external innovation to strengthen its long-term oncology pipeline.
Last month, Regeneron entered into a strategic research collaboration with clinical-stage biopharmaceutical company Parabilis Medicines to develop multiple therapeutic candidates.
The partnership centers on Parabilis’ Helicon peptide platform, with a primary focus on Antibody-Helicon Conjugates (AHCs) — an emerging therapeutic class aimed at addressing historically “undruggable” intracellular targets.
Regeneron is actively strengthening its oncology portfolio to further diversify its revenue base. The company’s oncology franchise gained momentum following the label expansion of Libtayo.
However, the late-stage study evaluating the combination of fianlimab and cemiplimab in first-line unresectable locally advanced or metastatic melanoma failed to meet the primary endpoint of statistically significant improvement in progression-free survival (PFS) versus Merck’s (MRK - Free Report) Keytruda (pembrolizumab) monotherapy.
The results represent a setback for Regeneron’s efforts to strengthen its position in the competitive melanoma immunotherapy market, where established PD-1/LAG-3 combinations such as Bristol Myers Squibb (BMY - Free Report) Opdualag have already gained traction.
Regeneron continues to advance the program through an ongoing phase III head-to-head trial comparing the high-dose fianlimab and cemiplimab combination directly against Opdualag in first-line advanced melanoma.
Regeneron’s shares have lost 19.8% so far this year compared with the industry’s decline of 3.5%.
Image Source: Zacks Investment Research
Keytruda is approved for several types of cancer and alone accounts for around 50% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive the long-term growth of Keytruda.
BMY’s Opdualag is a combination of nivolumab and relatlimab. The drug is indicated for treating adults who have a type of skin cancer called melanoma that has spread or cannot be removed by surgery (advanced melanoma) and children who are 12 years of age and older, who have melanoma that has spread or cannot be removed by surgery (advanced melanoma).
Sales of Opdualag have been robust as the drug continues to serve as a standard of care in first-line melanoma.
View the Zacks #1 Rank List
Image: Bigstock
REGN Expands Cancer Deal With CytomX for Bispecific Therapeutics
Key Takeaways
Regeneron Pharmaceuticals, Inc. (REGN - Free Report) expanded its licensing and collaboration agreement with clinical-stage, oncology-focused biopharmaceutical company CytomX Therapeutics, Inc. (CTMX - Free Report) .
Both companies have expanded their collaboration to develop conditionally activated bispecific cancer therapies that combine CytomX’s Probody therapeutic platform with Regeneron’s Veloci-Bi bispecific antibody technology.
Please note that the partnership, originally established in 2022, is focused on leveraging CytomX’s biologic masking technology to develop Regeneron’s investigational bispecific antibodies that remain inactive until selectively activated by proteases within the tumor microenvironment. This approach is designed to enhance the therapeutic window and reduce off-target toxicities of next-generation T-cell-engaging therapies, potentially expanding the reach of immunotherapy to tumor types that have historically shown limited responsiveness.
Financial Terms of the Expanded Agreement
Under the expanded agreement, the companies will continue collaborative discovery efforts to identify and validate conditionally active bispecific antibody candidates.
Regeneron will assume responsibility for preclinical and clinical development as well as commercialization activities.
CytomX will receive a $37 million target nomination payment for two newly selected targets, while Regeneron has the option to nominate up to six additional targets in the future.
The expanded collaboration carries the potential for up to approximately $4 billion in target nomination, development, regulatory, and commercial milestone payments. CytomX is also eligible to receive tiered royalties on global net sales of products developed under the agreement.
REGN’s Efforts to Diversify Its Portfolio
Regeneron’s decision to expand its partnership with CytomX reflects growing confidence in the potential of conditionally activated bispecific cancer therapies.
Shares inched up 2.7% following the news.
The expanded commitment signals continued investment in next-generation immunotherapies and highlights Regeneron’s strategy of leveraging external innovation to strengthen its long-term oncology pipeline.
Last month, Regeneron entered into a strategic research collaboration with clinical-stage biopharmaceutical company Parabilis Medicines to develop multiple therapeutic candidates.
The partnership centers on Parabilis’ Helicon peptide platform, with a primary focus on Antibody-Helicon Conjugates (AHCs) — an emerging therapeutic class aimed at addressing historically “undruggable” intracellular targets.
Regeneron is actively strengthening its oncology portfolio to further diversify its revenue base. The company’s oncology franchise gained momentum following the label expansion of Libtayo.
However, the late-stage study evaluating the combination of fianlimab and cemiplimab in first-line unresectable locally advanced or metastatic melanoma failed to meet the primary endpoint of statistically significant improvement in progression-free survival (PFS) versus Merck’s (MRK - Free Report) Keytruda (pembrolizumab) monotherapy.
The results represent a setback for Regeneron’s efforts to strengthen its position in the competitive melanoma immunotherapy market, where established PD-1/LAG-3 combinations such as Bristol Myers Squibb (BMY - Free Report) Opdualag have already gained traction.
Regeneron continues to advance the program through an ongoing phase III head-to-head trial comparing the high-dose fianlimab and cemiplimab combination directly against Opdualag in first-line advanced melanoma.
Regeneron’s shares have lost 19.8% so far this year compared with the industry’s decline of 3.5%.
Image Source: Zacks Investment Research
Keytruda is approved for several types of cancer and alone accounts for around 50% of MRK’s pharmaceutical sales. Merck is currently working on different strategies to drive the long-term growth of Keytruda.
BMY’s Opdualag is a combination of nivolumab and relatlimab. The drug is indicated for treating adults who have a type of skin cancer called melanoma that has spread or cannot be removed by surgery (advanced melanoma) and children who are 12 years of age and older, who have melanoma that has spread or cannot be removed by surgery (advanced melanoma).
Sales of Opdualag have been robust as the drug continues to serve as a standard of care in first-line melanoma.
REGN’s Zacks Rank
Regeneron currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.