Dive Brief:
- Shares in bluebird bio Inc. fell Wednesday, closing down the day down 10% in value compared to the start of the week despite inking an amended deal with Celgene Corp. to co-develop and co-promote a closely watched experimental CAR-T therapy.
- The deal for the anti-BCMA treatment bb2121 to treat patients with relapsed/refractory multiple myeloma, follows a broad global oncology research collaboration initially signed by the two companies in 2013.
- The option realized in this week's deal means that the two companies will co-develop, co-manufacture and co-promote bb2121 in the U.S., with Celgene having sole responsibility outside the country.
Dive Insight:
The market didn't seem impressed by the revised deal between bluebird bio and Celgene. The collaboration validates bluebird's research, but investor reaction illustrated frustrations that Celgene has not acquired the company outright.
Celgene surprised some investors in January when it paid $9 billion to buy CAR-T rival Juno Therapeutics Inc. Many investors questioned why the big biotech would go all in on Juno and not bluebird, casting some shade on bluebird's offerings.
The initial deal with bluebird took place in 2013, and was then amended in 2015, 2016 and 2017. In the February 2016 version of the agreement, bluebird bio exclusively licensed the worldwide rights to develop and commercialize bb2121 product to Celgene, retaining an option to co-develop and co-commercialize in the U.S., and it's this option that has been realized.
Under the terms of the agreement, bluebird will get up to $70 million in milestone payments for the first indication, with further payments for a second indication, as well as mid-single digit to low teens in tiered royalty payments.
"Entering into this co-development and co-promotion partnership with Celgene is a significant step forward in building a fully integrated oncology franchise for bluebird and together, we are committed to rapidly advancing development of bb2121 for patients," said Joanne Smith-Farrell, oncology franchise leader and SVP of corporate development and strategy at bluebird.
Data from the bb2121 Phase 1 trial, presented at ASH 2017 in December, showed responses in 17 of 18 patients and complete responses in 10, despite this being a dose-finding study in heavily pretreated patients. The treatment isn't the only clinical-stage anti-BCMA CAR T program in development between Celgene and bluebird; bb21217 is in a two-part open-label study in relapsed/refractory multiple myeloma as well.
Massachusetts-based bluebird has been ramping up its manufacturing capabilities, with in-house expansion and deals with Brammer Bio LLC, Novasep Inc. and and MilliporeSigma.