This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

The Deal: Bayer Inks Deal With Israel's Compugen

NEW YORK ( TheStreet) -- Germany's Bayer HealthCare (BAYRY) is broadening its options for cancer pipeline candidates in a new deal with Tel Aviv-based Compugen (CGEN - Get Report).

Bayer said Monday, Aug. 5, it has signed a collaboration and license agreement with Compugen to research, develop and commercialize antibody-based therapeutics for cancer immunotherapies against two targets identified by the Israeli company.

Compugen could get more than $540 million for the deal. It is receiving an up-front payment from Bayer of $10 million and is eligible to receive more than $500 million in potential milestone payments for both programs. The deal also would provide up to $30 million in preclinical milestones.

Should either drug be approved for marketing, Compugen could also get mid-to-high single-digit royalties on global net sales.

Antibody-based immunotherapies, which stimulate the body's own immune cells to fight cancer cells, caused quite a stir at the recent meeting of the American Society of Clinical Oncology.

For example, both Bristol-Myers Squibb (BMY - Get Report) and Merck (MRK - Get Report) showed positive data and received a lot of chatter about their respective anti-programmed death receptor 1, or anti-PD1, immunotherapies. Bristol's nivolumab is approaching Phase 2 trials for solid tumors and Merck's lambrolizumab is in Phase 2 for melanoma.

"Immunotherapy is one of our focus areas in oncology," Andreas Busch, head of Bayer's Global Drug Discovery, said in a statement.

Compugen chief executive Anat Cohen-Dayag said, "We believe that the prediction and validation of these two targets, through the use of our broadly applicable predictive discovery infrastructure, provides additional validation for our long-term commitment to establishing this unique capability."

The two targets are novel immune checkpoint regulators that are believed to play a role in immunosuppression. The antibody drugs would block the immunosuppressive function of the targets and reactivate the patients' anti-tumor immune response to fight the cancer. Even though therapeutic antibodies represent one of the fastest-growing areas of drug development, it is still difficult and time consuming to generate antibodies with the specific biological and therapeutic functions required to modify the right genetic targets. Compugen's Predictive Structural Biology infrastructure platform identifies functional interaction sites of proteins, providing the basis for rational drug design.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
ONXX $0.00 0.00%
BAYRY $151.38 -1.32%
BMY $65.00 0.46%
CGEN $7.54 0.67%
MRK $57.60 -1.13%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs