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Argenx Shares Up After AbbVie Exercises Option To License Immuno-Oncology Drug

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Argenx Shares Up After AbbVie Exercises Option To License Immuno-Oncology Drug

Shares of Netherlands-based biotech argenx SE – ADR (NASDAQ: ARGX) were trading up Wednesday following an announcement concerning its immuno-oncology antibody AGRX-115.

What Happened

Argenx said AbbVie Inc (NYSE: ABBV) has opted to exercise its exclusive option to license and develop ARGX-115.

The companies struck a collaboration agreement in April 2016 that provided for Argenx to develop the product candidate through IND-enabling studies, and, upon the successful completion of these studies, AbbVie likely exercising its option to license the ARGX-115 program while assuming responsibility for further clinical development and commercialization.

ARGX-115 targets the GARP — glycoprotein A repetitions predominant — immuno-oncology target.

Why It's Important

Immuno-oncology, or the modulation of the body's own immune system to fight cancer, has evolved as an effective way to combat cancer.

Argenx stock was up 3.22 percent at $90.37 at the time of publication Wednesday. 

What's Next

The exercising of the licensing option permits AbbVie to develop and commercialize ARGX-115-based products. In return, Argenx becomes eligible to receive development, regulatory and commercial milestone payments of up to $625 million as well as tiered royalties on sales, if approved.

Argenx has the right to co-promote ARGX-115-based products in the EU and Swiss Economic Area.

Related Links:

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The Daily Biotech Pulse: FDA Snub For Allergan, Myriad's Q4 Beat, Mallinckrodt's Stannsoporfin

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