Wednesday, June 29, 2022

Aptevo Therapeutics Inc (NASDAQ:APVO) Rockets Upward After Deal Announcement

Aptevo Therapeutics Inc (NASDAQ:APVO) took the elevator up to a new level at the start of trading today. APVO is up 60% at the time of writing on the strength of its new deal to sell its hyper immune products. The deal for APVO is worth $74.5M and currently has traders salivating.
APVO is a biotech company that really took a tumble throughout the doldrums of the summer. The stock lost about half of its price, but, today, has rebounded and regained a majority of its losses in a matter of hours. We will continue to watch the stock, but this deal is providing some serious momentum for APVO, as it should.
Aptevo Therapeutics Inc (NASDAQ:APVO) is a clinical-stage biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients’ lives.  The Company has four commercial products – IXINITY, WinRho SDF, HepaGam B and VARIZIG and a versatile core technology – the ADAPTIR™ modular protein technology platform capable of generating highly-differentiated, bispecific antibodies with unique mechanisms of action to treat cancer or autoimmune diseases.  Aptevo has two bispecific antibody candidates currently in clinical development and a broad pipeline of novel investigational-stage bispecific antibody candidates focused in immuno-oncology and autoimmune disease and inflammation.
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Under the terms of the agreement, Saol Therapeutics will acquire the three hyperimmune products currently marketed by Aptevo:  WinRho SDF for autoimmune platelet disorder and hemolytic disease of the newborn; HepaGam B for the prevention of Hepatitis B following liver transplantation and for treatment following hepatitis B exposure; and VARIZIG for treatment following exposure to varicella zoster virus for individuals with compromised immune systems.  The transaction is valued at up to $74.5 million, including an upfront payment of $65 million.
Here are some quotes about the new deal with details:
“We’re extremely pleased to announce our agreement with Saol Therapeutics for the sale of our hyperimmune commercial products. The significant non-dilutive funding provided by this transaction will ensure that Aptevo continues to be solidly capitalized to invest in the opportunities where we see the most potential for long-term value creation for our stockholders,” said Marvin L. White, President and Chief Executive Officer.  “With a deal value of up to $74.5 million, representing approximately 2.8 times both our current market capitalization on August 30, 2017 and our 2016 annual revenue, we view this as a very attractive opportunity to monetize our non-core assets and not dilute our stockholders as we continue to invest in promising assets like our ADAPTIR™ platform.”
“Our ADAPTIR platform has generated a rich pipeline of novel immunotherapeutic candidates targeting oncology and autoimmune indications.  With bispecific antibodies gaining increasing recognition in the scientific and financial communities as the ‘next-generation’ of therapeutic antibodies, we believe that continued investment in this promising technology platform may yield enhanced value for our stockholders.  Importantly, this transaction strengthens Aptevo’s cash position and provides us the necessary resources to continue to advance our ADAPTIR product candidates through potentially value-adding inflection points, including an ongoing dose-escalation Phase 1 study of APVO414 in metastatic castration resistant prostate cancer; an ongoing  Phase 2 clinical program for otlertuzumab, and future Phase 1 clinical studies of our novel bispecifics focused on engaging the immune system, including, APVO436 and ALG.APV-527, a bispecific targeting ROR1, and a bispecific based on targeted cytokine delivery, APVO210 (formerly known as ES210.)”
Aptevo Therapeutics Inc (NASDAQ:APVO) is now holding a market cap of $45.48M along with 21.42M shares out. This deal is a serious game-changer for the company and really helps the company in the cash department, which is so crucial for biotechs. We will continue to provide updates as this deal colors out across the market. Sign-up for continuing coverage on shares of $APVO stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: We hold no position in $APVO, either long or short, and we have not been compensated for this article.

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