GSK
GSK
entered into an exclusive license agreement with China-based WuXi Biologics (“WuXi Bio”) to develop up to four bi- & multi-specific T-cell engaging (“TCE”) antibodies targeting oncology indications.
Per the terms of the agreement, WuXi Bio will grant exclusive rights to GSK to research, develop, manufacture and market one TCE antibody. GSK will also be granted an option under the agreement to develop three additional bi- & multi-specific TCE antibodies.
In consideration of entering into the agreement, GSK will make an upfront payment of $40 million to WuXi Bio. In addition, WuXi Bio will also be eligible to receive potential milestone payments totaling up to $1.46 billion. WuXi Bio will also be eligible to receive tiered royalties on the future sales of these antibody candidates.
Shares of GSK have declined 35.7% so far this year compared with the
industry
’s 17.9% fall.
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Based in China, WuXi Bio is a global Contract Research, Development and Manufacturing Organization (CRDMO) that aims to accelerate the discovery, development and manufacturing of biologics using its proprietary platforms and develop new treatments/therapies.
Using this agreement, GSK intends to expand its oncology portfolio and introduce new TCE antibody therapies optimized for effective tumor killing with a desirable safety profile.
In oncology, GSK has a development portfolio of 15 potential medicines. This has been achieved through the advancement of internal programs and targeted business development, including the January 2019 acquisition of Tesaro, the July 2021 acquisition of Sierra Oncology and the February 2019 global alliance with Merck KGaA (to co-develop bintrafusp alpha, a promising new oncology medicine).
Zacks Rank & Stocks to Consider
GSK currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the overall healthcare sector include
Allogene
ALLO
,
Amarin Corporation
AMRN
and
AVEO Pharmaceuticals
AVEO
, each carrying a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
In the past 60 days, estimates for Allogene’s 2022 loss per share have narrowed from $2.39 to $2.38. During the same period, the loss estimates per share for 2023 have narrowed from $2.84 to $2.82. Shares of Allogene have declined 57.8% in the past one-year period.
The earnings of Allogene beat estimates in each of the last four quarters, witnessing an earnings surprise of 9.44%, on average. In the last reported quarter, Allogene’s earnings beat estimates by 6.45%.
In the past 60 days, estimates for Amarin’s 2022 loss per share have narrowed from 15 cents to 13 cents. Shares of Amarin have declined 62.0% in the past year.
Earnings of Amarin beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing a negative earnings surprise of 14.29%, on average. In the last reported quarter, Amarin’s earnings beat estimates by 200.00%.
In the past 60 days, estimates for AVEO Pharmaceuticals’ 2022 loss per share have narrowed from 76 cents to 68 cents. During the same period, the earnings estimates per share for 2023 have risen from 46 cents to 52 cents. Shares of AVEO Pharmaceuticals have surged 233.5% in the past one-year period.
Earnings of AVEO Pharmaceuticals beat estimates in three of the last four quarters while missing the mark on one occasion, witnessing an earnings surprise of 19.87%, on average. In the last reported quarter, AVEO Pharmaceuticals’ earnings beat estimates by 43.75%.
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