This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Infinity Pharma Snags Abbvie for Blood Cancer Drug Partnership

Stocks in this article: INFI ABBV GILD PCYC

CAMBRIDGE, Mass ( TheStreet) -- Infinity Pharmaceuticals (INFI) signed up Abbvie (ABBV) as a development and marketing partner for its experimental blood cancer drug IPI-145, the companies announced Wednesday.

Under terms of the partnership, Abbvie is paying Infinity $275 million in upfront cash to license worldwide rights to IPI-145, an oral drug designed to block a protein known as PI3K critical for tumor cell growth. Infinity is also eligible to receive an additional $530 million in future cash payments tied to IPI-145 achieving certain development and regulatory milestones. If IPI-145 is approved, Infinity and Abbvie will share marketing responsibilities and split sales and profits in the U.S. Outside the U.S., Infinity will receive a royalty on net sales from Abbvie ranging from 23.5% to 30.5%.

IPI-145 is also now known as duvelisib.

Infinity is already heavily invested in duvelisib's future with a full slate of phase II and phase III studies in chronic lymphocytic leukemia and non-hodgkin lymphoma either underway or getting ready to start before the end of the year. But duvelisib has also struggled to distinguish itself from formidable competition, most notably  Gilead Sciences' (GILD)  Zydelig (also a PI3K inhibitor) and  Pharmacyclics' (PCYC) Imbruvica , both of which are already approved. Duvelisib has also been dogged with questions about its safety and tolerability relative to competing drugs in the same PI3K inhibitor class, although today's Abbvie partnership will likely assuage some of those concerns.

Before entering today's partnership for duvelisib, Abbvie's lead blood cancer drug candidate was ABT-199, which has demonstrated tremendous efficacy in mid-stage studies but has also been dogged with safety concerns.

Infinity shares closed Tuesday at $10.92, ahead of the Abbvie partnership announcement. Infinity's stock is down 16% this year and almost 40% over the past two years, primarily due to concerns about the future potential of duvelisib relative to its competition.

Also Wednesday, Roche  (RHHBY)  agreed to supply its drug Gazyva to Infinity for combination studies with duvelisib.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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