Adimab's has just realized the first BIG fruits of its business model to use its yeast based technology to discover mAbs to specified targets. As a result, it has signed two major deals -- one with GSK and he second with Biogen Idec -- to enable these companies to use the technology in their discovery programs. This is a boon to Adimab and its investors.
GSK will give upfront payments, annual licensing fees, and will be on the hook for a royalty stream from the antibodies it creaes that go commercial as drugs. Biogen will pop for a one-time signing fee and will make milestone payments tied to their preclinical and clinical goals. Adimab can also earn additional royalties on some of their targets.
Adimab's CEO, Tillman Gerngross, sas the company will now be bringing in about 3x its current $20 M burn rate for at least the next 5 to 10 years (nothing like specificity). Gerngross is proud that his company is bow able to pay dividends to shareholders after only 6 years of existence. With the immediate future much more secured, Gerngross and team are now able to concentrate on making their next set of deals. Companies 3-7 are lined up and ready to go with Company 3 already in contract stage for the technology and the others in negotiation. Powerful stuff for a newbie.
Adimab has been able to deliver the goods with speedy discovery of antibodies to defined targets. There platform has worked in most sytems tried too. That has made them attractive to big pharma and biotech and accelerated their success. See Xconomy.
Posted by Bruce Lehr July 29th 2013.