Biotech Values

[DewDiligence]

ADXS licenses Canadian commercial tights to pipeline and sells equity for gross proceeds of $25M:

http://finance.yahoo.com/news/advaxis-announces-licensing-agreement-knight-120000197.html

Advaxis, Inc...today announced that the Company has entered into a licensing agreement with Knight Therapeutics Inc. (GUD.TO)…to commercialize in Canada Advaxis's product portfolio including its three lead drug candidates: axalimogene filolisbac (ADXS-HPV) for human papilloma virus (HPV)-associated cancers, ADXS-PSA for prostate cancer and ADXS-HER2 for HER2 expressing solid tumors.

In connection with the licensing agreement, Knight is purchasing directly from Advaxis 359,454 shares at $13.91 per share, which represents a 7 percent premium to the price of Advaxis's common stock at market close on August 25, 2015. In addition, Sectoral Asset Management, a leading Canadian-based global healthcare investment advisor, is purchasing 1,437,815 shares at $13.91 per share directly from Advaxis on behalf of its clients. The combined gross proceeds to Advaxis from these direct investments is $25 million.

…Under the terms of the licensing agreement, Knight will be responsible for all commercial activities related to Advaxis current and future products, including axalimogene filolisbac, ADXS-PSA and ADXS-HER2, in Canada. Advaxis is eligible to receive double digit royalty as well as sales milestones.

The milestone payments could total $30M, according to the PR header. Still, I’m not overly impressed by this transaction insofar as the only up-front payment comes from the sale of equity.