Indication intelligence, analysis and sector perception

Aduro Biotech (ADRO) $30 M milestone Payment from Janssen for an IND submission for ADU-214 for Lung cancer - BUY

October 29, 2015 10:06am

ADRO is UP +$0.45 to $27.64 having closed at $27.19

ADRO has received a milestone payment from Janssen Biotech, Inc. for the acceptance of Aduro’s Investigational New Drug (IND) Application by the U.S. FDA for ADU-214, a LADD immunotherapy product candidate for the treatment of lung cancer.

Janssen, ADRO’s license partner for ADU-214, expects to initiate a multi-center P1 trial to evaluate the safety and immunogenicity of intravenous administration of ADU-214 by the end of 2015.

In October 2014, Aduro entered into its second agreement with Janssen Biotech, Inc., part of the Janssen Pharmaceutical Companies <Johnson & Johnson > granting an exclusive, worldwide license to ADU-214 and other product candidates engineered for the treatment of lung cancer and certain other cancers based on the LADD immunotherapy platform. Under the agreement facilitated by Johnson & Johnson Innovation center,

The Bottom Line: A "BIG" deal for a small company. ADRO received a $30 M up-front payment and a milestone payment associated with submission of the IND, and is eligible to receive future development, regulatory and commercialization milestone payments up to a potential total of$786 M. In addition, Aduro is eligible to receive royalties at a rate ranging from high single-digits to low teens on worldwide net sales upon successful launch and commercialization.

LADD is Aduro’s proprietary platform of live-attenuated double-deleted Listeria monocytogenes strains that have been engineered to induce a potent innate immune response and to express tumor-associated antigens to induce tumor-specific T cell-mediated immunity.

35 companies, 1 interpreter!

Insight, foresight and recommendation

What's Happening Today

4 hours 6 min ago
RegMed Investors’ (RMi) pre-open: It’s “make” a buck day!

My motto … never leave an investor uninformed! I say today what others won’t, so you can do what others can’t.

My name is Henry McCusker; I endorse these opinions under my own name and with a subscription based membership.

Do you have an opinion you would like to share with us? We would like to hear from you.

Please e-mail us at hwm@regmedinvestors.com.

Editor and Publisher ... Henry McCusker enters his tenth (10th) year at RegMed Investors with past experience in sell-side analysis, buy-side management, corporate management and due diligence.

RegMed Investors (RMi) or Regmedinvestors.com content is the intellectual property of Henry McCusker. Any copying, republication or redistribution of RMI’s content, including by framing or similar means, is expressly prohibited without the prior written consent of Scimitar; who also shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. For additional information on other Scimitar media services or reposting please email hwm@regmedinvestors.com.

The information included above as well as individual companies and/or securities mentioned should be construed as guidance in RMi reviews.

The facts stated and the opinions given in this publication are based on data and information considered to be reliable and have been carefully worked into my qualitative analyses and prognoses. However, no guarantee can be given as to their fairness, accuracy or completeness.

Henry McCusker, the editor and publisher of RegMed Investors does not hold or have positions in securities referred to in this publication.