Biotech Values

[DewDiligence]

PFNX, HSP/(PFE) ink collaboration for Lucentis FoB:

http://finance.yahoo.com/news/pfenex-hospira-announce-collaboration-develop-141500337.html

Pfenex Inc. and Hospira, Inc…today announced that the companies have entered into an agreement to exclusively develop and commercialize for worldwide sales PF582, Pfenex's biosimilar candidate to Genentech's Lucentis (ranibizumab injection).

Under the terms of the collaboration, Pfenex will receive an upfront payment of $51 million once the collaboration receives antitrust approval, and, over the next five years and beyond, will be eligible to receive a combination of development and sales-based milestone payments up to an additional $291 million, and tiered double-digit royalty on net sales of the product.

Pfenex and Hospira will share the Phase 3 equivalence clinical trial costs, and Hospira will be responsible for manufacturing and commercializing the product worldwide.

The $51M up-front payment should cover PFNX’s phase-3 development costs, perhaps leaving a little left over. PFNX is up 22% today.