Abbvie Inks Immuno-Oncology Deal With Harpoon Therapeutics

AbbVie Inc. (NYSE:ABBV) announced that it has entered into a immuno-oncology research collaboration with small biotech Harpoon Therapeutics, inking an immuno-oncology research collaboration. The deal aims to generate novel T-cell engagers for the treatment of cancer based on the combination of Harpoon's tri-specific T-cell activating construct TriTAC molecules and AbbVie's research-stage immuno-oncology targets.

Per the agreement, Harpoon will provide Abbvie the right to pursue further development and commercialization of the TriTAC molecules.

AbbVie’s shares have outperformed the industry year to date. The stock has surged 52.7% compared with the industry’s gain of 20.5%.

Last week, Abbvie entered into a research, option and license agreement with another clinical-stage immuno-oncology company, Turnstone Biologics, whereby AbbVie obtained an exclusive option to license up to three of Turnstone's next-generation oncolytic viral immunotherapies. Per the agreement, Abbvie has an option to obtain all global development and commercialization rights to Turnstone Biologics’ Ad-MG1-MAGEA3 therapy. Turnstone’s Ad-MG1-MAGEA3 therapy is in a couple of phase I/II studies for different solid tumor indications alone as well as in combination with an approved anti-PD-1 checkpoint inhibitor.

AbbVie continues to work on expanding and accelerating its presence in oncology, building upon its growing position in hematological oncology. With the acquistion of cancer drugmaker Stemcentrx in April 2016, AbbVied gained a late-stage candidate (rovalpituzumab tesirine or Rova-T), four additional early-stage compounds in solid tumor indications and a significant portfolio of pre-clinical assets.

Rova-T is currently in registrational studies for small cell lung cancer (SCLC). A phase I, eight-arm "basket study" on Rova-T in neuroendocrine tumors is also ongoing. Data from a pivotal phase III (TRINITY) study on Rova-T in third-line or later SCLC is expected this year. According to AbbVie, the candidate has blockbuster potential and could be launched in 2018. AbbVie intends to study the candidate for additional indications and estimates peak sales close to $5 billion.

AbbVie is also studying another marketed cancer drug Venclyxto/Venclexta to expand the label to address the broader relapsed/refractory chronic lymphocytic leukemia (CLL) patient population, expand into earlier lines of therapy, and broaden into other hematologic malignancies.

Zacks Rank & Other Stocks to Consider

AbbVie sports a Zacks Rank #3 (Hold). Some better-ranked stocks in health care sector include Ligand Pharmaceuticals Inc. (NASDAQ:LGND) , Adaptimmune Therapeutics plc (NASDAQ:ADAP) , and Novo Nordisk (CO:NOVOb) A/S (NYSE:NVO) . While Ligand holds a Zacks Rank #1, Adaptimmune and Novo Nordisk carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ligand’s earnings per share estimates have moved up $3.68 to $3.70 for 2018 over the last 30 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 6.19%. The share price of the company has increased 41.3% year to date.

Adaptimmune’s loss per share estimates have narrowed from $1.07 to 95 cents for 2017 and from $1 to 90 cents for 2018 over the last 60 days. The company delivered positive earnings surprises in three of the trailing four quarters, with an average beat of 2.56%. The share price of the company has increased 77.7% year to date.

Novo Nordisk’s earnings per share estimates have moved up $2.37 to $2.38 for 2017 and from $2.51 to $2.53 for 2018 over the last 60 days. The company came up with positive earnings surprises in three of the trailing four quarters, with an average beat of 3.63%. The share price of the company has increased 40.7% year to date.

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