Biogen
BIIB
announced that it has entered into a license and collaboration agreement with privately-held Alectos Therapeutics to develop and commercialize the latter’s novel Parkinson’s disease candidate, AL01811. The candidate is an oral selective GBA2 inhibitor, which has the potential to slow disease progression in patients with Parkinson’s disease.
The collaboration agreement will add Alectos’ expertise in small-molecule therapeutics with Biogen’s development capabilities in movement disorders.
Per the terms of the agreement, Biogen will pay Alectos an upfront payment of $15 million and will gain an exclusive global license to AL01811 and additional unnamed backup molecules. Biogen will also pay up to $77.5 million for the development milestone to Alectos. Another $630 million will be paid by Biogen in potential commercial payments should the collaboration achieve certain milestones. Alectos is also eligible to receive royalties on potential sales of drugs developed under this agreement.
Currently, Biogen and Alectos will jointly carry out the preclinical activities for AL01811. Biogen will assume all development, regulatory, manufacturing, and commercial activities and related costs, after the candidate enters into clinical-stage development.
Alectos’ AL01811 holds robust growth opportunity as it targets a patient population that has no approved disease modifying therapies, creating significant unmet needs for patients seeking to slow disease progression. Per the press release, there are approximately 10 million patients worldwide who are affected by Parkinson’s disease.
The small molecule GBA2 inhibitors like AL01811 have demonstrated a reduction in lysosomal pH and increased levels of the lysosomal proton pump, vATPase, which is involved in maintaining the acidic pH required for lysosomal function. There is increasing evidence suggesting that lysosomal dysfunction plays a key role in the pathology of neurodegenerative disease, including Parkinson’s disease, implying that AL01811 may be effective in slowing disease progression.
We note that Biogen already has a collaboration with another biotech,
Denali Therapeutics
DNLI
, for developing a treatment for Parkinson’s disease, inked in 2020. Biogen and Denali
initiated a mid-stage study
to evaluate their pipeline candidate, BIIB122, in patients with early-stage Parkinson’s disease.
Biogen and Denali’s BIIB122 targets a novel gene, LRRK2, that has the potential to impact the underlying biology and slow the progression of Parkinson’s disease. The companies are developing an oral formulation of this LRRK2-inhibiting therapy for Parkinson’s disease.
The new agreement with Alectos boosts Biogen’s Parkinson’s disease pipeline with a candidate using a different mechanism than BIIB122 to treat patients. The development of a treatment option for neuro-degenerative diseases like Parkinson’s disease is complex. Developing candidates with different mechanisms of treatment increases the chances of a successful development of a therapy for these diseases.
Biogen’s stock has declined 17.8% this year so far compared with a decrease of 24% for the
industry
.
Image Source: Zacks Investment Research
Biogen is one of the world’s leading biotechnology companies, focusing on developing innovative therapies for treating serious neurological and neurodegenerative diseases, including its core growth areas of multiple sclerosis and neuroimmunology, Alzheimer’s disease and dementia, movement disorders including Parkinson’s disease, neuromuscular disorders, including spinal muscular atrophy and amyotrophic lateral sclerosis and ophthalmology.
Zacks Rank & Stocks to Consider
Biogen currently has a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
A couple of better-ranked biotech stocks are
Sesen Bio
SESN
and
Alkermes
ALKS
, both carrying a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Sesen Bio’s 2022 loss has narrowed from 33 cents to 32 cents per share in the past 60 days. Shares of SESN have declined 16.3% in the year-to-date period.
Earnings of Sesen Bio beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 69.94%.
The Zacks Consensus Estimate for Alkermes’ 2022 loss per share has narrowed from 14 cents to 3 cents in the past 60 days. Shares of ALKS have risen 21.8% year to date.
Earnings of Alkermes beat estimates in each of the last four quarters, the average being 350.48%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
