Biotech Values

[DewDiligence]

XON +6% on CAR-T deal with Merck Serono:

http://finance.yahoo.com/news/merck-serono-intrexon-announce-agreement-120000174.html

Intrexon will be responsible for all platform and product developments until IND filing. Merck[-Serono] will nominate targets of interest for which CAR-T products will be developed. Merck[-Serono] will also lead the IND filing and pre-IND interactions, clinical development and commercialization. In addition, Intrexon has the opportunity to explore targets independently, granting Merck opt-in rights during clinical development.

…Intrexon will receive an upfront payment of $115 million. For the first two targets of interest selected by Merck Serono, Intrexon will receive research funding and is eligible to receive up to $826 million development, regulatory and commercial milestones, as well as tiered royalties on product sales. In addition, Intrexon is also eligible to receive further payments upon achievement of certain technology development milestones.

Given the tepid response to this news, investors are evidently giving low odds to the success of this collaboration.