Ablynx announced that partner Boeheringer Ingelheim (BI) has selected another preclinical candidate triggering a € 5m milestone payment.
Our View:
It is the second development candidate emerging from the broad strategic alliance which the companies started in September 2007. This agreement allows for potential milestone payments of up to € 125m plus royalties for each Nanobody developed. BI is exclusively responsible for the development, manufacturing and commercialization of any products resulting from the collaboration, while Ablynx retains certain co-promotion rights in Europe.
Similar to the first preclinical candidate (selected at the end of 2010), this development candidate could also play a role in the treatment of cancer. Ablynx says the new molecule has the potential to interfere with two distinct (but undisclosed) proteins that are thought to pay a role in human cancers.
We estimate that in the hands of BI, it will take around 18-24 months to finish the preclinical package and initiate a first in human test.
In total, BI has 3 Nanobody products in preclinical development, as also a candidate from the Alzheimer alliance was selected in mid 2010.
Conclusion:
Good news and another validation of Ablynx’ Nanobody platform to develop drug candidates for a broad range of diseases.
To date, Ablynx has earned over € 57m in cash from the strategic BI alliance.
We welcome the cash inflow which allows Ablynx to keep its cash burn under control.