There are many targets (including oncology) that are non-EASY (IF at all) druggable by small molecules. It does not mean that antibody will work, only that it is worth to try. BTW, 36 targets is large numbers, in real word it may come down to 3-5 targets. AZ for sure has targets that they were addressing with small molecules, but without success. Also, AZ can go parallel, biologic and chemistry, and no time wasted.
The structure of the deal is that ABGX will finance early discovery and early preclinical on its own. After ABGX have success, AZ will pick candidate(s) to move into formal pre-clinical, where they start to pay for program.
I am curious is mutated-EGFr included as target? AZ is financing deal (early ABGX work) with convertible. Very good deal for AZ (low risk down the road, specially when they have liberty and priority to chose what they will own and what will be collaborative), while risk is on ABGX. AZ does not pay for early work. They are financing it, with potential for significant return on investment. ABGX need to be successful and prove that antibodies are worth further development, before any milestone and cash start to flow into company.
So, does ABGX have candidates (and how much) in formal pre-clinical stage that will be shared with AZ, and with better economic (milestones and royalties)? They did not want to talk about this, so my answer (what else I can think?) is that they do not. Maybe something from CRGN collaboration, but then they will share milestones/royalty.
Again, does this deal indicate certain weakness in ABGX business plan? Restructuring of the AMGN deal was first orange flag. This was second. Yes, there is certain risk and weakness. Very slow clinical progress for ABX-EGF has deeper ruts than I was previously assuming. Have no ideas what are exactly problems? That W is talking about safety advantage without better efficacy relative to C225 (no more, "we have more potent candidate"!) is third orange flag.
Now, you can draw conclusion (or speculation, what else when f***** FD killed any normal communication between investor and bios) on your own.
Miljenko |
