Please ensure Javascript is enabled for purposes of website accessibility

Is BioSante Giving Away the Store?

By Brian Orelli, PhD - Updated Apr 6, 2017 at 10:20PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A licensing deal without upfront cash seems to be better than no deal at all. I guess.

You can't give this stuff away! Oh wait, BioSante Pharmaceuticals (Nasdaq: BPAX) seems to be doing exactly that.

Yesterday, the drugmaker licensed its pancreas and prostate cancer vaccine to Aduro BioTech to use it in combination with Aduro's vaccine CRS-207.

I love a good platform drugmaker. The ability to make money over and over again by licensing out a technology is a blessing for investors that don't have to take a dilution hit every time the company needs more cash.

Unfortunately, there doesn't seem to be any upfront cash for BioSante in the deal. Compare that to Seattle Genetics (Nasdaq: SGEN), which has generated more than $155 million licensing its antibody-drug conjugate technology to 11 different companies, most recently to Abbott Labs (NYSE: ABT) and Pfizer (NYSE: PFE).

BioSante is due milestone and royalty payments if the combination product is commercialized, but no numbers were put in the press release, so it's impossible to know if BioSante traded upfront cash for a larger percentage on the back end.

Granted, the cancer vaccine program isn't BioSante's lead product. It'll live and die by its testosterone gels: LibiGel for female sexual dysfunction and Bio-T-Gel, which is partnered with Teva Pharmaceuticals (Nasdaq: TEVA), for men that need a testosterone boost.

But the cancer vaccine has been pumped as the next Dendreon's (Nasdaq: DNDN) Provenge. Licensing it to a company whose claim to fame is that it has been issued $20 million in grants and contracts doesn't exactly lend credence to the program.

Better than nothing? I guess. Enough to get me excited about BioSante? Not really.

Looking for a better high-tech play? Fool analysts offer up the top 2 plays for the coming tech boom. Grab your free copy by clicking here.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ANI Pharmaceuticals, Inc. Stock Quote
ANI Pharmaceuticals, Inc.
ANIP
$31.54 (6.29%) $1.86
Pfizer Inc. Stock Quote
Pfizer Inc.
PFE
$52.31 (-0.23%) $0.12
Seagen Inc. Stock Quote
Seagen Inc.
SGEN
$180.11 (1.79%) $3.17
Abbott Laboratories Stock Quote
Abbott Laboratories
ABT
$110.22 (1.45%) $1.57
Teva Pharmaceutical Industries Limited Stock Quote
Teva Pharmaceutical Industries Limited
TEVA
$7.89 (4.92%) $0.37

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
311%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.