Biotech Values

[DewDiligence]

ABT licenses anti-CD4 mAb from Biotest AG:

http://finance.yahoo.com/news/Abbott-and-Biotest-Announce-prnews-2086805917.html?x=0&.v=1

BT-061 is currently in Phase II clinical trials for RA and psoriasis, with preclinical studies underway to study its potential use in other immune-related diseases… BT-061 is a humanized monoclonal antibody that works by activating the body's T-regulatory cells, a subset of T-cells, strengthening a natural function of the body that prevents excessive immune reactions. Unlike other anti-CD4 antibodies that have been in development, BT-061 does not cause depletion of CD4 positive T-cells that would give rise to weakened immune responses.

…Abbott and Biotest will co-promote BT-061 in the five major European markets (Germany, France, United Kingdom, Italy and Spain) and Abbott will have exclusive global rights to commercialize BT-061 outside those countries. Biotest will receive an upfront fee of $85MM. Pending achievement of certain development, regulatory, commercial and sales-based milestones, Biotest would be eligible to receive additional milestone payments from Abbott, potentially amounting to a total of $395MM, and royalties. Biotest will be responsible for manufacturing the initial clinical supply of BT-061 and the companies will share responsibility for commercial production.

Investors who worry that Humira will eventually run out of gas (or become generic) may find this development encouraging.