Medigene’s buy of Trianta is “lucrative move” say analysts

Medigene’s (MDG: DE) 4 million euro ($5.5 million) purchase of fellow German company Trianta Immunotherapies could be a “potentially transformational” deal in a biotech hot spot, according to analysts.

Analysts at Edison Equity Research say that the deal, announced on Monday, gives Medigene access to three types of immunotherapy assets (a dendritic cell [DC] vaccine is in Phase I/II studies). With the total value capped at more than 10 million euros, it says “this could prove to be a shrewd and lucrative move”.

By investing in cancer immunotherapy, a growing area in oncology, the deal could attract a great amount of investor interest. Edison says that Trianta’s three main assets are well positioned in development stage and Trianta’s DC vaccine is third-generation, with multiple potential efficacy and manufacturing benefits over the forerunners, such as prostate cancer drug Provenge (sipuleucel-T) from US biotech firm Dendreon (Nasdaq: DNDN).