bluebird bio Inc (NASDAQ:BLUE) and ViroMed Co., Ltd. announced that they have entered into an exclusive license agreement to research, develop and commercialize chimeric antigen receptor (CAR) T cell therapies using ViroMed’s proprietary humanized antibody to an undisclosed cancer target for solid tumors.
Under the terms of the agreement, ViroMed will provide bluebird bio exclusive rights to its novel humanized antibody to the target, and bluebird bio will leverage its proprietary lentiviral gene therapy platform and CAR T capabilities to develop CAR T therapies against the target. Financial terms of the agreement include a $1 million upfront payment and subsequent milestone payments to ViroMed, which together could total over $48 million per licensed product if certain development and regulatory milestones are achieved. ViroMed is also eligible to receive tiered royalties on product sales. bluebird bio will conduct and fund clinical development as well as regulatory and commercial activities.
“Over the course of 2015, bluebird has continued to expand its immuno-oncology research and preclinical programs, building a broad pipeline of multiple targets in solid and hematologic malignancies. We are pleased to enter this agreement with ViroMed and add their novel target to our growing pipeline,” said Rob Ross. M.D., head of oncology, bluebird bio. “We believe that this target, combined with our lentiviral vector and manufacturing expertise, position us as a leader in delivering potentially transformative T cell-based immunotherapies to patients.”
“CAR T technology has been gaining worldwide attention in recent years as an innovative technology backed by highly promising results from recent clinical studies,” said Seung Shin Yu, Ph.D., director of new business planning, ViroMed. “bluebird bio owns critical technologies for the development of CAR T therapeutics as well as manufacturing capabilities and know-how for commercialization, making them an ideal partner for us. This agreement is a testament to ViroMed’s competitive edge in innovative gene therapy technologies like CAR T technology.” (Original Source)
Shares of bluebird bio are up 3.68% to $83.99 in pre-market trading. BLUE has a 1-year high of $197.35 and a 1-year low of $40.96. The stock’s 50-day moving average is $81.39 and its 200-day moving average is $130.86.
On the ratings front, bluebird has been the subject of a number of recent research reports. In a report released today, Janney Montgomery Scott analyst Debjit Chattopadhyay assigned a Buy rating on BLUE, with a price target of $121, which implies an upside of 49.4% from current levels. Separately, yesterday, Jefferies Co.’s Gena Wang reiterated a Buy rating on the stock and has a price target of $108.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Debjit Chattopadhyay and Gena Wang have a total average return of 17.5% and -14.6% respectively. Chattopadhyay has a success rate of 58.8% and is ranked #50 out of 3642 analysts, while Wang has a success rate of 42.9% and is ranked #3209.
The street is mostly Bullish on BLUE stock. Out of 11 analysts who cover the stock, 11 suggest a Buy rating . The 12-month average price target assigned to the stock is $150.00, which represents a potential upside of 85.2% from where the stock is currently trading.
bluebird bio Inc is a clinical-stage biotechnology company. It is engaged in developing potentially transformative gene therapies for severe genetic and rare diseases and in the field of T cell-based immunotherapy.