Mabvax Therapeutics Holdings Inc (NASDAQ: MBVX) is flying early on this morning, and in a big way. In fact, the stock is gaining in multiples as investors catch wind of news that the company has entered into an asset acquisition and licensing agreement. With the news, excited investors are sending the stock screaming for the top. Today, we’ll talk about:
- The agreement;
- what we’re seeing from MBVX as a result; and
- what we’ll be watching for ahead.
MBVX Screams For The Top On Agreement
As mentioned above, MabVax Therapeutics Holdings is having an incredibly strong start to the trading session this morning after the company announced that it has entered into an agreement. In a press release issued early this morning, the company announced that it has signed an agreement with Boehringer Ingelheim relating to an asset acquisition and related agreements having to do with the MBVX program targeting a glycan commonly overexpressed with multiple solid tumor cancers. In the release, the company said that Boehringer Ingelheim has acquired all rights in and to the program.
As a result of the agreement, MBVX will receive an upfront payment in the amount of $11 million. The company is also eligible to receive near-term milestone payments as well as downstream regulatory milestone payments and further earn-out payemnts. Also, the company said that the asset acquisition is separate and distinct from other programs under development, allowing the company to retain rights to its lead HuMab-5B1 antibody program. This program is currently in Phase 1 clinical trials as a therapeutic product and as a diagnostic product. The company will also retain other antibody discovery programs from its rich antibody discovery portfolio. In a statement, David Hansen, President and CEO at MBVX, had the following to offer:
We are very pleased to have Boehringer Ingelheim as a major industry partner to further develop one of our preclinical antibody assets based on our proprietary HuMab technology… This agreement with Boehringer Ingelheim recognizes the value of our innovative approach to discovering novel antibodies to diagnose and treat cancer. We have been committed since the founding of the Company to discovering and developing unique fully human antibodies to diagnose and treat patients with cancers where there remain significant unmet medical needs.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. In the case of Mabvax Therapueitcs, the news proved to be overwhelmingly positive. Not only will the company receive substantial funding through the sale of an asset, the company will also retain all rights to its flagship development program. So, it’s no surprise to see that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:48), MBVX is tradinga t $2.31 per share after a gain of $1.72 per share or 291.53% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on MBVX. In particular, we’re interested in following the story surrounding the company’s continued work with regard to its flagship HuMab-5B1 antibody program and how the new funding assists the company in the development of the asset. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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