Dive Brief:
- Boston-based oncology therapeutics company Oncologie Inc. has snapped up bavituximab and other phosphatidylserine-targeting assets from Avid Bioservices Inc., a contract development and manufacturing organization (CDMO) previously known as Peregrine Pharmaceuticals Inc.
- In return, Avid receives $8 million in upfront payments over six months, and could get $95 million more through potential development, regulatory and commercialization milestones. Avid may also see tiered royalties up to the mid-teens.
- While Oncologie will be responsible for the research, development and commercialization of bavituximab, Avid will carry out contract development and manufacturing activities.
Dive Insight:
Avid started life as Peregrine, but changed its name in January 2018 to reflect its transition to a CDMO business structure. As part of this move, Avid has been looking for a biopharma to take on its phosphatidylserine-targeting candidates and assets, including bavituximab and other phosphatidylserine-targeting antibodies.
It found such a partner in Oncologie.
"We believe [Oncologie has] the resources and expertise to maximize the potential of the program," said Avid CEO Roger Lias in a Feb. 12 statement.
The deal marks the completion of its transition to a CDMO, Lias said, as well as providing capital that can support the company in the near-term.
Bavituximab has a checkered history, likely another driver behind Avid's change of direction.
Back in February 2016, then-Peregrine stopped its Phase III SUNRISE trial in patients with previously treated locally advanced or metastatic non-squamous non-small cell lung cancer (NSCLC). The drug, in combination with docetaxel, "did not show a sufficient improvement in overall survival as compared to the docetaxel group to warrant continuation of the study." Last summer, Peregrine made the decision to cut its workforce by a fifth, and began to pursue strategic options for its R&D assets.
Conversely, Oncologie's focus has been on mid-stage clinical programs that modify the tumor microenvironment, and the deal provides the company with a new lead development program.