Incyte, Agenus Report Alliance To Develop Novel Immuno-Oncology Antibodies

(RTTNews) - Incyte Corp. (INCY) and Agenus Inc. (AGEN, AGEND) announced a global license, development and commercialization agreement focused on novel immuno-therapeutics using Agenus' proprietary Retrocyte Display antibody discovery platform.

The alliance would focus initially on the development of checkpoint modulator antibodies directed against GITR, OX40, LAG-3 and TIM-3. Agenus and Incyte would share all costs and profits for the GITR and OX40 antibody programs on a 50:50 basis, with Agenus eligible for potential milestones; TIM-3 and LAG-3 are royalty-bearing programs to be funded by Incyte, with Agenus eligible for potential milestones and royalties. The first clinical studies are likely to be initiated in 2016.

Pursuant to the agreements between the parties, Incyte would make upfront payments to Agenus of $25 million and invest $35 million by purchasing about 7.76 million newly issued shares of Agenus common stock at a price of $4.51 per share. Further to the initial four target programs in the alliance, the parties have an option to jointly nominate and pursue additional targets within the framework of the multi-year collaboration.

The closing of the transaction is conditioned on the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.