Shares in bluebird bio soar after it strikes partnership with Regeneron to work on immune cell therapies

Shares in bluebird bio Inc (NASDAQ:BLUE) climbed in premarket trade Monday after it announced a strategic collaboration with Regeneron Pharmaceuticals (NASDAQ:REGN) to discover, develop and commercialize novel immune cell therapies in oncology.

The news sent bluebird bio stock up 5.4% to US$158.10 while Regeneron Pharmaceuticals shares were flat at US$394.

Cambridge, Massachusetts-based bluebird bio focuses on developing transformative gene therapies for severe genetic diseases and cancer. Its integrated product platforms encompass gene therapy, cancer immunotherapy and gene editing – providing it with the potential to treat a broad range of serious diseases. The company’s lead oncology products are bb2121 and bb21217

The collaborators have jointly selected six initial targets and will equally share R&D costs to the point of submitting an investigational new drug application (IND) application. Additional targets may be selected over the five-year research collaboration term.

When an IND is submitted for a potential cell therapy product, Regeneron will have the right to opt-in to a co-development/co-commercialization arrangement for certain collaboration targets, with 50/50 cost and profit sharing. If Regeneron does not opt-in, the company is eligible to receive milestone payments from bluebird bio on potential resulting products.

“The collaboration with Regeneron complements bluebird bio’s growing immuno-oncology development portfolio, which includes clinical and pre-clinical CAR T and T cell receptor programs,” said Philip Gregory, chief scientific officer of bluebird bio.

“With Regeneron’s proven targeting technologies, in combination with our deep expertise in cell biology and vector technology, as well as clinical experience with leading CAR T cell drug products, we hope to rapidly advance novel cellular therapies with the potential to transform the lives of people with cancer.”

Regeneron will also make a US$100mln investment in bluebird bio common stock at a price of US$238.10 per share, which represents a premium of 59% over the US$150 closing price on August 3.

Story by ProactiveInvestors