Biotech Values

[DewDiligence]

ABBV places bet on “I-N” for AD:

https://finance.yahoo.com/news/alector-abbvie-announce-collaboration-advance-110000124.html

AbbVie…and Alector, a privately owned biotechnology company, today announced a global strategic collaboration to develop and commercialize medicines to treat Alzheimer's disease and other neurodegenerative disorders.

Immuno-neurology is a rapidly evolving scientific area focused on harnessing the power of the immune system to attack devastating neurodegenerative disorders like Alzheimer's disease. There is increasing rationale – from large-scale human genetic analyses and animal model studies – that immune deficiencies within the central nervous system play an important role in the progression of neurodegeneration. Alector has developed an innovative immuno-neurology technology platform to simultaneously address multiple pathologies associated with neurodegeneration.

…Under the terms of the agreement, AbbVie and Alector have agreed to research a portfolio of antibody targets and AbbVie has an option to global development and commercial rights to two targets. Alector will conduct exploratory research, drug discovery and development for lead programs up to the conclusion of the proof of concept (PoC) studies. Upon exercise of the option, AbbVie will lead development and commercialization activities.

Alector and AbbVie will co-fund development and commercialization and will share global profits equally.

Alector will receive a $205 million upfront payment and a potential, future equity investment of up to $20 million.

ABBV already holds a significant equity stake in Alector, so this collaboration is not as unorthodox as it looks.