Company Analysis - Celldex & Avant
A promising merger
The merger of two such complementary companies undoubtedly has the potential to lead to great success, not only due to the synergy of the intellectual property and product portfolios but also the depth of experience and knowledge each will bring to the table. As of 2008, the combined company will have a well balanced pipeline, with three compounds in mid- to late-stage development, with another six compounds in earlystage development.
Several milestones will be high on the agenda for 2008.
With the importance of the progress of CDX-110, the
company anticipates Phase IIb data in GBM. In addition,
Phase II data is expected on Ty-800 in the treatment of
Salmonella typhi. Phase I data on oncology candidate
CDX-1307 in pancreatic, breast, colorectal and bladder
cancers is also expected over the course of 2008 as well
as initiation of Phase I trials of other drug candidates in
oncology, inflammatory and infectious diseases. The
development of novel antibody programmes is also
planned. In addition, with a potential milestone
payment of US$10 million due upon successful US
launch of Rotarix, reaching this development goal
during 2008 would give a substantial financial and
morale boost to the newly-integrated Avant.
The merger has been approved by both boards of directors and is expected to close in the first quarter of 2008, subject to approval by Avant's current shareholders at a meeting scheduled for early 2008. President and CEO of Avant, Dr. Una Ryan, summed up the benefits by stating that "the combined company will have multiple products advancing in tandem, mitigating risk and creating a strong, diversified company focused on clinical progress and value creation".
The merger of Avant and Celldex combines two emerging pharmaceutical companies, each with strong pipelines and intellectual properties. With several products in clinical development, the success of the newly-integrated Avant will largely depend on the completion of clinical development milestones and continued progress of new compounds, particularly through the use of Avant's proprietary technology.
Jonathan Stephens
Pharmaprojects Analyst
