Aim-listed biopharma Abzena plc (LON:ABZA) has noted that one of the companies using its antibody technology is to be acquired in a deal worth more than US$400mln.
True North Therapeutics is to be bought for for an upfront payment of US$400mln plus assumed cash by Nasdaq-listed Bioverativ Inc (NASDAQ: BIVV).with further payments of up to US$425mln in possible milestone payments and royalties.
As part of the acquisition, rights to True North Therapeutics' lead candidate, TNT009, a first-in-class monoclonal antibody in development to treat cold agglutinin disease (CAD) pass to Bioverativ.
WATCH: Abzena partner acquisition 'neatly illustrates our business model', says CEO
A rare and chronic haemolytic condition that often leads to severe anaemia, there are no approved therapies for CAD and that affects approximately 16 people per million globally.
TNT009 was created using Abzena's composite human antibody technology and is one of range of drugs being developed by other companies using its expertise.
Abzena has the potential to earn future licence fees, milestone payments and/or royalties on these "inside" products.
Finncap added that further development of TNT009 will be pursued by Bioverativ, with Abzena holding a royalty agreement on any future sales of TNT009 (finnCap estimate 1% royalty rate).
The broker's target price is 80p and it added it was encouraged by yet another Abzena inside partner being acquired.
Shares jumped 9% to 37p.
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