Biotech Values

[DewDiligence]

MTEM -4% despite VRTX collaboration:

https://finance.yahoo.com/news/vertex-molecular-templates-establish-collaboration-120000578.html

Vertex Pharmaceuticals and Molecular Templates, Inc. (Nasdaq: MTEM) today announced that the two companies have entered into a strategic research collaboration to discover and develop novel targeted conditioning regimens that may enhance the hematopoietic stem cell transplant process, including transplants conducted as part of treatment with ex vivo CRISPR/Cas9 gene editing therapies such as CTX001.

CTX001 is currently being evaluated in two ongoing Phase 1/2 studies in patients with transfusion-dependent beta thalassemia and severe sickle cell disease, where a hematopoietic stem cell transplant is required as part of treatment with CTX001.

…Vertex will make an up-front payment of $38 million to MTEM, including an equity investment. MTEM is also eligible to receive future development, regulatory and sales milestones and option payments of up to $522 million (across two targets) and tiered royalty payments on future sales.

I’m not sure why MTEM investors are (mildly) disappointed with this deal.