Disclosure - I am now (minimally) long Abzena (LON:ABZA)
YesterdayAbzena (LON:ABZA) announced that Gilead Sciences Inc (NSQ:GILD) have advanced the Abzena MMP9 inhibitor straight from phase 1 to phase 3 for the treatment of gastric cancer. This is interesting as a successful phase 3 study may allow licence application. Normally products would be tested in a pilot efficacy study (phase 2) before advancing into phase 3, direct to phase 3 would suggest some good data from that first study - and would bring forward the date that the product could get to market should phase 3 be successful, 2017/2018 would seem realistic.
Digging around a little more lead me to discover that the same MMP9 is being progressed in phase 2 for Ulcerative Colitis, and may be tried out in Rheumatoid Arthritis and also some other cancers. All by Gilead and all large indications.
What I did not appreciate until reading up on Abzena (LON:ABZA), was that simtuzimab also belongs to Abzena (LON:ABZA). This is super "interesting" simtuzimab is one of the compounds that Gilead Sciences Inc (NSQ:GILD) has collected in its' attempt to conquer NASH (see - http://www.reuters.com/article/2014/11/09/us-health-liver-insight-idUSKCN0IT0IO20141109).
£GILD 's philosophy is to treat diseases with combination therapies - a strategy that is lead to them dominating HIV treatment and now owning the white hot hepatitis C market - beating off much bigger opposition, so its' acquisition of other compounds for NASH is far from negative (eg http://www.fiercebiotech.com/story/gilead-buys-its...).
As far as I can discover from Edison research notes, Abzena would only be due low single digit royalties from Gilead for the products mentioned above quoting examples of 1%. 1% of a single £1 billion indication is still £10 million gross, an opportunity that Abzena has more than 1 realistic shot at with Gilead.
This is not advice. DYOR etc.
