LAVA Therapeutics’ LVTX shares were up almost 27% on Jun 1, after market hours. This followed soon after Janssen Biotech, a subsidiary of Johnson & Johnson JNJ, announced that it selected a lead candidate for further development in clinical studies for cancer.
The decision was made as part of a collaboration agreement between the two companies (signed in May 2020). The study aims to discover and create bispecific antibodies that target gamma-delta T cells as a potential cancer treatment.
Per the terms of the aforementioned agreement, Janssen will be responsible for the future clinical development, manufacturing and commercialization of the selected candidate at its own expense.
LVTX has the opportunity to earn potential milestone payments as well as royalties based on sales of developed products.
LAVA’s shares have plunged 45.7% year to date compared with the industry’s 9.4% decline.
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LVTX is focused on developing its novel Gammabody platform that generates bispecific gamma-delta T cell engagers to target cancer cells and trigger an immune response in patients.
The company is developing its lead candidate, LAVA -051, in a phase I/IIa dose escalation study targeting multiple myeloma, chronic lymphocytic leukemia and acute myeloid leukemia.
LAVA has further expanded its portfolio of potential cancer therapy by entering into a license agreement with Seagen SGEN in September 2022. The agreement was aimed at the development of SGN-EGFRd2 (LAVA-1223) for treating solid tumors.
LVTX received an upfront payment of $50 million on the deal and could receive up to approximately $650 million in potential development, regulatory and commercial milestones from Seagen.
LAVA Therapeutics N.V. Price and Consensus
LAVA Therapeutics N.V. price-consensus-chart | LAVA Therapeutics N.V. Quote
Zacks Rank and Stock to Consider
Currently, LAVA carries a Zacks Rank #3 (Hold).
A better-ranked stock in the same sector is ADMA Biologics ADMA, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Loss per estimates for ADMA have narrowed from 14 cents to 9 cents for 2023 in the past 60 days. Shares of ADMA have risen 3.4% in the year-to-date period.
ADMA Biologics’ earnings beat estimates in three of the trailing four quarters and met the mark in one, delivering an average surprise of 19.3%.
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