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On Wednesday, H.C. Wainwright analysts upgraded Agenus Inc . (NASDAQ: NASDAQ:AGEN) stock from Neutral to Buy, setting a new price target of $25.00. The stock has shown remarkable momentum, gaining over 65% in the past week alone. According to InvestingPro data, three analysts have recently revised their earnings estimates upward, with price targets ranging from $6 to $8. The upgrade follows Agenus’ announcement of a strategic collaboration with Zydus Lifesciences, valued at approximately $141 million. The partnership aims to accelerate the clinical development of Agenus’ botensilimab and balstilimab therapies. This development comes as InvestingPro analysis indicates the company has been quickly burning through cash, with a concerning current ratio of 0.11.
Agenus will sell its biologics CMC facilities located in Emeryville and Berkeley, California, to Zydus for an upfront payment of $75 million. Additional contingent payments of $50 million are possible based on production orders for the therapies. Zydus will use these facilities to establish a U.S. Contract Development and Manufacturing Organization (CDMO) business, with Agenus as its first exclusive manufacturing customer.
The collaboration grants Zydus exclusive development and commercialization rights for botensilimab and balstilimab in India and Sri Lanka, with a 5% royalty on net sales to be paid to Agenus. Additionally, Zydus will make a $16 million strategic equity investment in Agenus, purchasing approximately 2.1 million shares at $7.50 per share, which represents an 81% premium.
Agenus plans to use the capital from this collaboration to advance a Phase 3 trial for the therapies in metastatic microsatellite stable colorectal cancer, prepare for regulatory submissions, and aim for a potential commercial launch, estimated in 2028. The transaction and closing agreements are expected to finalize within 60 days. With revenue declining 38% in the last twelve months and significant debt obligations, this strategic move could be crucial for the company’s future. For deeper insights into Agenus’s financial health and growth prospects, including exclusive ProTips and comprehensive analysis, check out the detailed research report available on InvestingPro.
In other recent news, Agenus Inc. reported a net loss of $26.4 million for the first quarter of 2025, a significant improvement from the $63.5 million loss in the same period last year. The company also reported revenue of $24.1 million for the quarter. Agenus has partnered with Zydus Lifesciences in a $141 million deal to transfer its biologics facilities in California, which includes an upfront payment of $75 million and up to $50 million in additional payments. This partnership aims to expedite the clinical development and manufacturing of cancer therapies, with Zydus becoming the exclusive contract manufacturer for two Phase-3 ready immuno-oncology products, Botensilimab and Balstilimab. Additionally, Zydus will invest $16 million in Agenus by purchasing approximately 2.1 million shares. The collaboration will also see Agenus receiving a 5% royalty on net sales from Zydus in India and Sri Lanka. Furthermore, Zydus has announced its strategic entry into the biologics contract development and manufacturing market with this acquisition, positioning itself as a key player in the U.S. biopharmaceutical sector. The transaction is expected to enhance both companies’ capabilities in the global oncology therapeutics market.
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