COPENHAGEN: Bavarian Nordic has struck a prostate cancer drug deal with Bristol-Myers Squibb that could be worth $1 billion should its trials, part of a new field in cancer treatment, be successful.
Shares in the small Danish company soared almost 40 percent after the two companies announced the deal on Wednesday. By 0950 GMT they were trading at 272 Danish crowns ($41), up 28.6 percent.
The agreement gives the US Company an exclusive option to license and commercialise Bavarian's prostate cancer drug candidate Prostvac, an immunotherapy treatment that helps the body's own immune cells fight tumours.
Immunotherapy for cancer is a rapidly evolving field which promises better and longer-lasting treatments; although oncology experts warn financial costs are high.
Under the deal, Bavarian Nordic could receive up to $975 million, including $60 million upfront, if it passes trials and sales milestones, and could also receive royalties from sales.
Prostvac is currently undergoing Phase III trials - the last set of tests under US regulations before it can be sold on the market.
"A significant Phase II survival benefit suggests Prostvac immunotherapy has the potential to revolutionise prostate cancer treatment," analysts at Jefferies said in a note.
Last week Bavarian said according to results of a small early-stage trial conducted by the US National Cancer Institute, Prostvac helped extend survival in patients with advanced prostate cancer significantly.
In that trial, patients were treated with Prostvac in addition to escalating doses of Bristol-Myers Squibb's Yervoy, an injectable treatment for advanced melanoma that works by taking the brakes off the body's immune system.
The two companies said on Wednesday they were preparing for Phase II trials of the two treatments combined.
"Bristol-Myers Squibb has an ongoing Phase III programme for Yervoy in prostate cancer and scientific rationale exists to evaluate Prostvac in combination with Yervoy and other agents from Bristol-Myers Squibb's immuno-oncology portfolio," they said in a statement.
Jefferies said Phase III results of Bavarian's Prostvac are unlikely to be ready before 2016 although there may be some initial analyses released in the second half of this year.
Comments
Comments are closed.