Emergent considers options as Abbott ends drug R&D collaboration

Shares of USA-based Emergent BioSolutions (NYSE: EBS) saw its shares fall 4% to $16.53 after the company announced plans for its TRU-016 program following receipt of a notice from health care major Abbott Laboratories (NYSE: ABT) that it is pulling out of its co-development and co-commercialization agreement for the potential blood cancer drug candidate.

Abbott’s decision is a result of the company's portfolio prioritization process. TRU-016, Emergent’s humanized anti-CD37 mono-specific protein therapeutic, recently commenced a Phase II clinical study for chronic lymphocytic leukemia (CLL) and is currently in the middle of Phase Ib clinical evaluation in non-Hodgkin’s lymphoma (NHL). These studies will be completed, and final study data will be available by 1H 2013.

Following the termination of the agreement, Emergent will retain worldwide rights for the development and commercialization of TRU-016, and Abbott will be obligated to provide certain forms of transition assistance for a certain period of time. Emergent does not expect that the ending of its deal with Abbott will have a material impact on its planned R&D expenditures for 2012.