Amgen and Advaxis ink up to $540 million cancer deal

US biotech major Amgen (Nasdaq: AMGN) has signed a development and commercialization agreement with Advaxis (Nasdaq: ADXS) for the latter’s ADXS-NEO. Advaxis share rocketed 29.3% to $10.95 on news of the deal, which could be wroth a potential $540 million.

The product is a novel, preclinical investigational cancer immunotherapy treatment that is designed to activate a patient's immune system to respond against the unique mutations, or neoepitopes, contained in and identified from each individual patient's tumor. This collaboration brings together Amgen's development expertise in immuno-oncology with Advaxis' MINE (My Immunotherapy Neo-Epitopes) program, which is uniquely positioned to develop a customized approach to cancer treatment.

Under the terms of the agreement, Amgen receives exclusive worldwide rights to develop and commercialize ADXS-NEO. Amgen will make an upfront payment to Advaxis of $40 million and purchase $25 million of Advaxis common stock. Amgen will be fully responsible for funding clinical and commercial activities.