Partnership With AnaptysBio Gives Tesaro Entree to Immuno-Oncology

Partnership with AnaptysBio gives Tesaro entree to immuno-oncology.

Mar 13, 2014 at 10:29AM

San Diego's AnaptysBio has cut a deal with Tesaro (NASDAQ:TSRO) that gives the Waltham, Mass.-based biopharmaceutical a new opening in the hot field of cancer immunotherapy.

Under the deal, Anaptys has granted Tesaro exclusive worldwide rights to preclinical antibody programs that target three "checkpoint" receptors (PD-1, TIM-3, and LAG-3) that regulate T cells, one of the white blood cell types that play a central role in the body's immune response. Tesaro agreed to pay $17 million upfront to license the three programs and to fund preclinical development, which will continue at AnaptysBio, according to CEO Hamza Suria.

Should those prospects make it to clinical trials, Tesaro would then take the lead in development and shell out more cash to the San Diego company. Tesaro could pay AnaptysBio as much as $18 million per drug candidate in certain research and development milestone payments, and another $90 million per program should each hit certain regulatory goals. Should these experimental antibodies ever see the market, Anaptys also stands to receive some royalties and other payments tied to sales figures. All told, the deal could eventually net Anaptys more than $341 million if everything breaks right.

In a statement from Tesaro, CEO Lonnie Moulder said, "We view immuno-oncology as a platform that can potentially transform the way in which numerous cancers are treated, and we expect immunotherapy-based approaches to become the foundation of many future cancer therapy regimens."

AnaptysBio uses a process called somatic hypermutation to make therapeutic antibodies that can be optimized for a broad range of specific targets. The company has focused its own efforts on developing antibody treatments for inflammatory diseases, and has struck partnerships with Merck, Roche, Novartis, Celgene, Gilead Sciences, Momenta Pharmaceuticals, and others to advance other antibody programs.

AnaptysBio considered proposals from a number of other companies, including some Big Pharmas, Suria said. The company chose Tesaro because of their development skills and their ability to move these assets from preclinical development through clinical studies and beyond, he said. Tesaro was founded on the idea of acquiring cancer drug candidates discovered by others and developing them in-house.

Even so, the competition to develop new antibody therapies that help the immune system fight cancer is already fierce. As Xconomy's Ben Fidler has reported, Merck, Roche/Genentech, and Bristol-Myers Squibb are all working in the area, and Novartis recently acquired Cambridge, Mass.-based CoStim Pharmaceuticals and its catalog of "late discovery stage immunotherapy programs," including one that targets PD-1.

So, what will separate the cancer antibodies AnaptysBio is developing from the rest of the crowd? Suria cited a few key features:

  • Suria said its somatic hypermutation platform "allows us to generate therapeutic antibodies against difficult targets (such as TIM-3), which is achieved by generating and screening unprecedented diversity in rapid, high-throughput manner." In its statement, Tesaro said TIM-3 works as a pattern-recognition receptor that dampens the antitumor immune response. Preclinical studies show that antibodies that block the TIM-3 receptor may enhance the antitumor immune response when combined with an anti-PD-1 agent.
  • Suria said the AnaptysBio platform also maximizes potency, meaning, in theory, a therapeutic effect could be achieved at lower antibody doses.
  • "In addition," Suria said, "our antibodies are optimized for manufacturability parameters (e.g. production yield and stability in storage), such that production is not a limiting factor for their success."

The first clinical trial from the collaboration is estimated to begin in the second half of 2015, with additional candidates following every one or two quarters after that.

Biotech isn't the only place for investors to find hyper-growth stocks
They said it couldn't be done. But David Gardner has proved them wrong time, and time, and time again with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

This article originally appeared on Xconomy, along with:

Bruce V. Bigelow has no position in any stocks mentioned. The Motley Fool recommends Celgene, Gilead Sciences, and Momenta Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers