Germany's MorphoSys is moving on after the surprise cancelation of a Celgene partnership spooked investors and battered the company's share price, with CEO Simon Moroney preaching patience for an early-stage cancer candidate.
Celgene has walked away from its $818 million multiple myeloma co-development pact with MorphoSys less than two years after striking the deal. The decision means Celgene has nothing to show for the $92 million upfront payment it made in 2013, but MorphoSys was hit harder by the news.
German drug developer MorphoSys is pairing up with Emergent BioSolutions to get its hands on an early-stage prostate cancer treatment, signing a deal worth up to $183 million for a promising antibody.
MorphoSys has notched another high-profile pharma partnership on its belt of antibody deals, and it's set its sights on immune checkpoint inhibitors. With this pact, Merck KGaA is also staking out a position on the growing roster of companies scrambling to find a profitable place for itself in immuno-oncology.
Novartis is making its way into late-stage studies for the orphan drug bimagrumab, and co-developer MorphoSys said sales of the muscle-growing treatment could peak at $4 billion a year.
The money will be used, in part, to pay for a mid-stage study of MOR208, its anti-CD19 antibody for chronic lymphocytic leukemia as well as new studies of MOR202, an anti-CD38 antibody currently in a Phase I/IIa clinical trial in multiple myeloma.
Celgene has decisively stepped in to partner on an early-stage myeloma and leukemia drug in MorphoSys's pipeline, paying $92 million upfront, a $60 million premium for a stake in the company and offering to cover a substantial portion of the R&D budget for the antibody targeting the CD38 molecule.
GSK is paying about $28 million of that upfront and will take over all further R&D and commercialization efforts. MorphoSys snags a double-digit royalty stream from any sales that might come along with up to $550 million in milestones.
New clinical data have bolstered MorphoSys CEO Simon Moroney's blockbuster hopes for the biotech's experimental antibody against rheumatoid arthritis (RA), and the chief executive is hunting for a partner to aid in developing the drug that he believes could generate north of $1 billion in annual sales, Reuters reported.
That dark cloud you've been watching form around the late-stage Alzheimer's drug development field has come equipped with a bright silver lining for Roche.