Fra Pareto:
BioInvent - Validating deal with USD 25m upfront payment
BioInvent today announced a deal with Exelixis to develop new preclinical immuno-oncology antibodies. BioInvent will receive USD 25m as an upfront payment, adding approx. SEK 255m to BINV’s already strong cash position of SEK 1.28 bn (as of March 31). In addition, BINV will be eligible for success-based development and commercialization milestones as well as royalties on net sales from successfully developed antibodies within this collaboration. Like Pfizer, Exelixis was impressed by BioInvent’s patient-centric platform and chose to pick three targets from it. We see this as a strong validation of BINV’s platform that not only adds non-dilutive funding to the company but further increases BINV’s pipeline and thus future value at no cost. We believe the stock will trade up 10-20% based on this announcement and we expect another catalyst before end of this month with first safety and efficacy data from BT-001. We thus reiterate our Buy rating on BINV with a target price of SEK 115/share.