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VANCOUVER - AbCellera (NASDAQ:ABCL) has announced the expansion of its partnership with pharmaceutical giant AbbVie Inc . (NYSE:ABBV), a prominent player in the biotechnology industry with a market capitalization of $309.55 billion, focusing on the discovery of T-cell engagers (TCE) for oncology treatments. This collaboration, which builds on the initial agreement from December 2022, grants AbbVie access to AbCellera's TCE platform for developing therapeutic antibodies aimed at tumor targets. According to InvestingPro data, AbbVie maintains a robust gross profit margin of 70.33%, highlighting its operational efficiency in the pharmaceutical sector.
Carl Hansen, Ph.D., founder and CEO of AbCellera, expressed optimism about the expanded collaboration, which aims to deliver novel cancer immunotherapies to patients.
Under the terms of the expanded agreement, AbCellera will spearhead the discovery activities while AbbVie retains the rights to develop and commercialize any resulting therapeutic antibodies. Financially, AbCellera will receive upfront and research payments, and is further eligible for milestone payments and tiered royalties on net sales of products stemming from this collaboration. AbbVie's strong financial position, with annual revenue of $55.53 billion, and an overall "GOOD" financial health score from InvestingPro, suggests robust capability to fund and commercialize new therapeutic developments.
AbCellera's proprietary T-cell engager platform is designed to overcome the efficacy and safety challenges traditionally associated with T-cell engagers. By binding both tumor targets and the CD3 protein on T-cells, the platform aims to direct the body's immune response more effectively against cancer cells. This technology includes novel CD3-binding antibodies and costimulatory elements to improve treatment outcomes for difficult-to-treat cancers.
AbCellera, a biotechnology firm, is involved in the discovery and development of antibody medicines across a wide range of therapeutic areas, including cancer, metabolic and endocrine conditions, and autoimmune disorders. The company leverages a combination of technology, data science, and interdisciplinary teams to address complex antibody discovery challenges.
The announcement includes forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which involve inherent risks and uncertainties. These statements should not be taken as guarantees of future performance or outcomes.
This expansion signifies a continued effort to innovate in the field of cancer treatment, aiming to provide new, effective options for patients. The information is based on a press release statement from AbCellera Biologics Inc. Analysts maintain a bullish outlook on AbbVie, with comprehensive analysis available through InvestingPro's detailed research reports, which provide deeper insights into the company's growth prospects and market position among 1,400+ top US stocks.
In other recent news, AbbVie and REGENXBIO have made advancements in their collaborative efforts to develop a gene therapy, ABBV-RGX-314, for the treatment of two major eye diseases. The companies are planning a Phase 3 clinical program for diabetic retinopathy and anticipate pivotal trial results for wet age-related macular degeneration in 2026. Recent developments also include AbbVie's decision to record a non-cash after-tax impairment charge of approximately $3.5 billion related to the emraclidine intangible asset. This is due to unsuccessful trials of emraclidine, a drug under development for schizophrenia and Alzheimer's disease.
AbbVie has adjusted its fourth-quarter earnings guidance for 2024 due to significant research and development costs, with an expected impact of $0.88 per share. This adjustment brings the company's full-year 2024 adjusted diluted earnings per share to a projected range of $10.02 to $10.06. Analyst firms have revised their ratings on AbbVie's stock, with Truist Securities reducing its price target to $211 from $215, while Piper Sandler raised its price target to $220.
In terms of mergers and acquisitions, AbbVie has recently acquired Nimble Therapeutics for $200 million and Aliada Therapeutics. These acquisitions aim to enhance AbbVie's pipeline in immunology and inflammation, neuropsychiatry, oncology, and aesthetics. Lastly, AbbVie reported positive results from its Phase 3 TEMPO-2 trial of tavapadon, a potential treatment for early Parkinson's disease.
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