Ablynx announced that partner Boeheringer Ingelheim (BI) has selected another preclinical candidate triggering a € 5m milestone payment.
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.
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.