Replies to post #208243 on Biotech Values

[poorgradstudent]

RE: Arginase / IDO / TDO

I don't really know. Hard to compare without clinical data.

At some point MRK could favour their own internal IDO and IDO-related drugs. I would think that *if* it gets to that, then the IDO class would have proven to be valuable.

On CALA's website, they note they've licensed things from Mars Corporation. I'm assuming this isn't Mars of Mars bars?

[DewDiligence]

CALA +50% on CB-1158 collaboration with INCY:

http://finance.yahoo.com/news/incyte-calithera-biosciences-announce-global-114500560.html

Incyte Corporation (INCY) and Calithera Biosciences, Inc. (CALA) announce today that the companies have entered into a global collaboration and license agreement for the research, development and commercialization of Calithera’s first-in-class, small molecule arginase inhibitor CB-1158 in hematology and oncology. CB-1158 is currently being studied in a monotherapy dose escalation trial and additional studies are expected to evaluate CB-1158 in combination with immuno-oncology agents, including anti-PD-1 therapy.

… Under the terms of the collaboration and license agreement, Calithera will receive an up-front payment of $45 million from Incyte. In addition, Incyte will make an equity investment in Calithera of $8 million through the purchase of shares at a price of $4.65 per share.

Incyte will receive worldwide rights to develop and commercialize CB-1158 in hematology and oncology and Calithera will retain certain rights to research, develop and commercialize certain other arginase inhibitors in certain orphan indications.

Incyte and Calithera will jointly conduct and co-fund development of CB-1158, with Incyte leading global development activities. Incyte will fund 70 percent of global development and Calithera will be responsible for the remaining 30 percent.

In the event of regulatory approvals and commercialization of CB-1158, Incyte and Calithera will share in any future U.S. profits and losses (receiving 60 percent and 40 percent, respectively) and Calithera will be eligible to receive over $430 million in potential development, regulatory and commercialization milestones from Incyte. Per the terms of the agreement, Calithera will have the right to co-detail CB-1158 in the U.S. and also be eligible to receive from Incyte tiered royalties based on future ex-U.S. sales, with rates ranging from low-to-mid double-digits.

If anyone here listened to the CC this morning, please post your notes.