Abgenix Conference Call pt 2
Raymond Withy, CEO, President and Director - Abgenix, Inc. [44]
--------------------------------------------------------------------------------
I'm not commenting on that Eric.
--------------------------------------------------------------------------------
Eric Ende, Merrill Lynch - Analyst [45]
--------------------------------------------------------------------------------
OK. Thank you very much.
--------------------------------------------------------------------------------
Operator [46]
--------------------------------------------------------------------------------
And your next question comes from Mahud Shunotta of JP Morgan. Please proceed.
--------------------------------------------------------------------------------
Mahud Shunotta, JP Morgan - Analyst [47]
--------------------------------------------------------------------------------
Hi, thanks for taking my question, and congratulations on the deal.
First question is, when would you realistically expect a product to enter the
clinic from this collaboration?
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [48]
--------------------------------------------------------------------------------
Well obviously, the development of each product is going to have many
product-specific, each product is different. We will certainly for products that
start off at the target stage, our goal will be to get a product from target to
IND as quickly as possible. Realistically that would take at least three years.
Now, it's, that's a process of discovering, of developing cell lines and
getting ready for the IND.
Now for products that may be a little bit more mature in our pre-clinical
pipeline, obviously that could go earlier.
Perhaps I could pass this over to Brent to comment on how they see the
timelines and the opportunity for antibodies in cancer therapy
Brent?
--------------------------------------------------------------------------------
Brent Vose, VP and Head of Oncology Therapeutic Area - AstraZeneca [49]
--------------------------------------------------------------------------------
Thanks very much. And obviously, the, if we start from just the new targets
identification, starting the immunization process, then I think that we're
probably talking IND somewhere around the 2006, and I would guess that with the
way that antibodies have been developed, launch around 2010, 11 is the sort of
numbers that we're talking up from a standing start.
But as Ray has said, with the availability of some of the, of the antibodies
that have perhaps already started the immunization process, are all further
along, then clearly those times can shift forward. So we're looking at again, a
portfolio of products coming through over the coming years in a true
collaboration as we develop this whole area.
--------------------------------------------------------------------------------
Mahud Shunotta, JP Morgan - Analyst [50]
--------------------------------------------------------------------------------
OK, great and then how are you going to decide between which products enter
into the royalty-based piece of this collaboration and which enter into the
50-50 piece?
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [51]
--------------------------------------------------------------------------------
Yes, let me take that. Well we're together going to come up with ideas for
targets to enter into the collaboration and from that, you know, AstraZeneca
will choose the targets that will move ahead into the milestone and royalty-base
part of the stream of the portfolio.
We will then select also potential candidates for co-development and move
those, move those through early stage development.
So I think the key point however, is that Abgenix and AstraZeneca are coming
together in this alliance, because we each bring different expertises to the
table. Abgenix, it's integrated, antibody platform to be able to go from target
to market, to be able to cover all the capabilities of antibodies to really
provide the A to Z, no pun intended, of antibody development.
AstraZeneca brings to the table enormous expertise in oncology, expertise at
being able to pick targets, expertise in pre-clinical research as well as
obviously clinical marketing.
So together, we're both creating an alliance of we think significant scale to
be able to most importantly develop a new set of potential products to treat
this disease.
--------------------------------------------------------------------------------
Mahud Shunotta, JP Morgan - Analyst [52]
--------------------------------------------------------------------------------
Great, now one final question, does this deal preclude from entering into any
other oncology related collaborations?
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [53]
--------------------------------------------------------------------------------
We have, as you know, indicated previously that we were winding down our new
multi, any new multi-antigen collaborations, but we have a series of very
important partnerships in place, companies that have accessed our technology,
some antibodies are now in clinical development, and this alliance in no way
will affect our existing alliances, partnerships with other companies.
--------------------------------------------------------------------------------
Mahud Shunotta, JP Morgan - Analyst [54]
--------------------------------------------------------------------------------
So this doesn't, just to be clear, it doesn't impact existing collaborations,
but you don't expect to enter into any new collaborations?
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [55]
--------------------------------------------------------------------------------
We do not expect over the next time period to enter into any new collaborations
in oncology. However, remember Abgenix is working in multiple therapeutic areas,
including inflammation, infectious disease, metabolic disease and so on.
--------------------------------------------------------------------------------
Mahud Shunotta, JP Morgan - Analyst [56]
--------------------------------------------------------------------------------
OK, great, thank you. Congratulations again.
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [57]
--------------------------------------------------------------------------------
Thanks Mahud .
--------------------------------------------------------------------------------
Operator [58]
--------------------------------------------------------------------------------
Again, ladies and gentlemen, if you'd like to ask a question, please key
star-one on your own touch-tone phone.
And your next question comes from Mark Purcell of Deutsche Bank. Please
proceed.
--------------------------------------------------------------------------------
Mark Purcell, Deutsche Bank - Analyst [59]
--------------------------------------------------------------------------------
Yes, thanks very much for taking my question. I just had three questions if I
may. The first question is just on the timing of the $100 million investment,
when it will be taken?
The second question is if you can give us a flavor of the areas in developments
where you have leading expertise or leading capability of on a certain target?
And then the third question is just qualitatively, whether you could give us
some idea of how many compounds are going to enter Phase I development over the
next three years within the alliance piece?
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [60]
--------------------------------------------------------------------------------
Let me just address your first question. We expect to receive the initial of
the $100 million investment upon the closing of the transaction and the closing
of the transaction will be on the clearance of the heart stop redina .
Now with regards to the flavor of the target, I think, obviously, there are
antibodies are, can play an important role of, as in therapeutically intervening
with targets that are either on the cell surface of tumor cells or excreted by
tumor cells. And part of what this collaboration is all about is to find targets
with the appropriate mechanism in order to truly target oncology.
Brent, I don't know if you have anything to add on the flavor of the targets
and the type of products that this collaboration might develop?
--------------------------------------------------------------------------------
Brent Vose, VP and Head of Oncology Therapeutic Area - AstraZeneca [61]
--------------------------------------------------------------------------------
Well it's perhaps better is? Les answers that, because clearly he's given the,
from a discovery perspective, considerable thought.
--------------------------------------------------------------------------------
Les Hughes, VP, Cancer Research - AstraZeneca [62]
--------------------------------------------------------------------------------
I mean clearly there are a number of processes that tumor cells have different
to normal cells, antiproliferatives ability to form blood vessels and the
invasive processes, and they will be the ones that we will be targeting. In
fact, they're the ones actually we have in our current portfolio of small
molecules, which we want to compliment with the antibodies.
So we're really basically looking at signaling pathways, which I say, it's
fundamental parts of what makes a cancer cell or cancer different from normal
cell.
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [63]
--------------------------------------------------------------------------------
Sure, so there's really this sort of opportunity to go into non-solid tumor
sites where AstraZeneca currently has, presence I guess.
--------------------------------------------------------------------------------
Brent Vose, VP and Head of Oncology Therapeutic Area - AstraZeneca [64]
Absolutely, yes.
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [65]
--------------------------------------------------------------------------------
Yes.
--------------------------------------------------------------------------------
Brent Vose, VP and Head of Oncology Therapeutic Area - AstraZeneca [66]
And clearly it compliments into areas where we can't actually attack the small
molecules, the non-drugable targets.
--------------------------------------------------------------------------------
Mark Purcell, Deutsche Bank - Analyst [67]
--------------------------------------------------------------------------------
Sure, and in terms of the number of targets entering Phase I, if you could just
comment on that?
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [68]
--------------------------------------------------------------------------------
Well I think, again, that is going to depend upon, you know, each particular
product characteristic. Obviously, we're starting off with a large number of
targets and early-stage product opportunities. You can apply traditional and
somewhat standard rates of attrition. I mean, obviously out of that portfolio, a
number, a reasonable number would get passed through into early stage clinical
trials; however, you know, you want to be selective. You want to make sure the
very best ones enter into the clinical. Standard industry attrition rates would
then say that for the antibodies one to four, one to five, one in five
antibodies were from the IND reach the market.
But this, you can't necessarily rely on history. And it's difficult, it is
difficult to make predictions. All I would say is that if we bring in the best
technology, antibody technology and combine it with the very significant
oncology expertise that AstraZeneca brings, you've certainly stacked the odds in
your favor to successfully develop some exciting new drugs for oncology.
--------------------------------------------------------------------------------
Mark Purcell, Deutsche Bank - Analyst [69]
--------------------------------------------------------------------------------
Sure, and are you tapping into any of the expertise within AstraZeneca and
since the targets have already discovered, i.e. you know, is it going to be
prospective from that point of view, that you may use their technology
knowledge, knowledge, et cetera, et cetera, existing within their target
database?
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [70]
--------------------------------------------------------------------------------
Well, we are, as I said before, we're both coming together to share our
expertise. The alliance will, I am confident, attempt to pick the very best
targets to move forward.
--------------------------------------------------------------------------------
Brent Vose, VP and Head of Oncology Therapeutic Area - AstraZeneca [71]
--------------------------------------------------------------------------------
And I'd like to add, just clearly we have some targets that we would dearly
love to have been involved in, but clearly if they're non-drugable by small
molecules, then this provides us with a great opportunity to actually find
products in those areas.
So yes, we will be bringing our expertise and our understanding of the, of the
sort of process of cancer formation into this.
--------------------------------------------------------------------------------
Mark Purcell, Deutsche Bank - Analyst [72]
--------------------------------------------------------------------------------
Thank you gentlemen.
--------------------------------------------------------------------------------
Operator [73]
--------------------------------------------------------------------------------
And your next question comes from Chip Gorran of FirstPoint Healthcare. Please
proceed.
--------------------------------------------------------------------------------
Chip Gorran, FirstPoint Healthcare - Analyst [74]
--------------------------------------------------------------------------------
HI, thank you. My questions have been answered.
--------------------------------------------------------------------------------
Operator [75]
--------------------------------------------------------------------------------
Sir, you may ask your question.
--------------------------------------------------------------------------------
Chip Gorran, FirstPoint Healthcare - Analyst [76]
--------------------------------------------------------------------------------
Thank you. My questions have been answered.
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [77]
--------------------------------------------------------------------------------
OK, so maybe at this point we should consider wrapping. Brent, maybe we could,
let's wrap up with some closing comments from each of us. Why don't you go
first?
--------------------------------------------------------------------------------
Brent Vose, VP and Head of Oncology Therapeutic Area - AstraZeneca [78]
--------------------------------------------------------------------------------
Just to repeat how delighted we are. I mean I think we have obviously
recognized just the way that the antibody arena has developed. I think we've
been very impressed with the Abgenix technology. I think it's part of a
continuing theme that we've had of really trying to improve the quality of the
molecules that we can get into clinical trials, and I think antibodies certainly
gives us that, because that's a very politive way of increasing a success rates.
And I think that maybe with Ray's comment about history not being necessarily a
guide, I think that what we're looking at here is a real meeting of minds that
offers the prospects of new targeted treatments that bring real benefits to
patients, and I think that's what we all want to see happen.
--------------------------------------------------------------------------------
Raymond Withy, CEO, President and Director - Abgenix, Inc. [79]
--------------------------------------------------------------------------------
Well thanks Brent. I just like to add that we're excited honestly about this
alliance. We're bringing together expertises to do, after all, what is the most
important thing we're doing in this business, which is trying to develop and
bring to market drugs to treat this life-threatening disease.
Thank you very much everybody. |
