Stock Update (NASDAQ:AGIO): Agios Pharmaceuticals Inc Selects Third Novel IDH Mutant Inhibitor, AG-881, for Clinical Development

Agios Pharmaceuticals Inc (NASDAQ:AGIO), a leader in the fields of cancer metabolism and rare genetic disorders of metabolism, announced that it plans to advance into clinical development AG-881, a small molecule that has shown in preclinical studies to fully penetrate the blood brain barrier and inhibit isocitrate dehydrogenase-1 (IDH1) and IDH2 mutant cancer models, in collaboration with its cancer metabolism partner Celgene Corporation. The companies have entered into a new joint worldwide development and profit share collaboration for AG-881 and plan to initiate clinical development of AG-881 in the second quarter of 2015. AG-881 will be the third IDH mutant inhibitor discovered by Agios to enter clinical development.

“The addition of our third IDH mutant inhibitor to our growing pipeline is an exciting milestone for Agios and underscores our goals to lead the scientific understanding of cancer metabolism and help as many patients as possible with an IDH mutant positive cancer,” said David Schenkein, M.D., chief executive officer of Agios. “AG-221 and AG-120 remain our lead medicines in clinical development and are advancing rapidly. We believe the addition of AG-881, given its unique profile, provides added flexibility to our portfolio of IDH inhibitors. Based on our preclinical findings, it has the potential to support our ongoing development effort to provide treatment options to patients with glioma, and it represents a possible second-generation molecule for both AG-221 and AG-120 in IDH mutant tumors. We look forward to generating data for AG-881 to inform our future development plans.”

Under the terms of the new AG-881 collaboration, Agios will receive an initial payment of $10 million in the second quarter of 2015 and is eligible to receive regulatory milestone payments of up to $70 million. Agios and Celgene will jointly collaborate on the worldwide development program for AG-881, sharing development costs 50/50 worldwide. The two companies have agreed to share any worldwide profits 50/50, with Celgene booking worldwide commercial sales. Agios would lead commercialization in the U.S. with both companies sharing equally in field-based commercial activities, and Celgene would lead commercialization ex-U.S. with Agios providing one third of field-based commercial activities in the major E.U. markets. (Original Source)

Shares of Agios closed yesterday at $98.75 . AGIO has a 1-year high of $138.85 and a 1-year low of $31.51. The stock’s 50-day moving average is $101.67 and its 200-day moving average is $102.68.

On the ratings front, Agios¬†has been the subject of a number of recent research reports. In a report issued on April 20, Oppenheimer analyst Ling Wang initiated coverage with a Hold rating on AGIO. Separately, on March 25, MLV & Co.’s Arlinda Lee maintained a Buy rating on the stock and has a price target of $130.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Ling Wang and Arlinda Lee have a total average return of -2.7% and 3.6% respectively. Wang has a success rate of 38.2% and is ranked #3079 out of 3581 analysts, while Lee has a success rate of 50.0% and is ranked #1517.

In total, 3 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $98.75 which is 36.5% above where the stock closed yesterday.

Agios Pharmaceuticals Inc is engaged in the development of medicines to treat cancer metabolism and inborn errors of metabolism, which are a subset of orphan genetic metabolic diseases.

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