Oncothyreon Collaborates with Celldex - Analyst Blog

Oncothyreon Inc. ONTY announced that it has entered into a collaboration agreement with Celldex Therapeutics, Inc., CLDX.

Both the companies will collaborate on a combined clinical trial of ONT-10 and varlilumab (CDX-1127). The phase Ib trial will be an open label study, wherein ONT-10 will be administered at the recommended single agent dose in combination with varlilumab at two dose levels in patients suffering from advanced breast or ovarian cancer.

The primary endpoint of the trial is to determine the safety and tolerability of the combined therapy. The other endpoints include evaluations of the impact of combination treatment on MUC1-specific humoral and cellular immune responses and anti-tumor effects.

As per the collaboration agreement, Oncothyreon will supply ONT-10 while Celldex will supply varlilumab. Oncothyreon will conduct and fund the phase I trial. The company also plans to submit a new Investigational New Drug IND application for the combination trial.

The agreement states that Oncothyreon and Celldex will jointly own the data from the trial and decide on the potential future development of the combination therapy. The companies have not granted each other a license, or any other rights, to their product candidate.

Oncothyreon primarily focuses on developing synthetic vaccines and targeted small molecules that can improve the lives of cancer patients.

Oncothyreon's most advanced cancer vaccine candidate is tecemotide (formerly known as stimuvax). Tecemotide is being evaluated for the treatment of non-small cell lung cancer (NSCLC).

We note that Oncothyreon has granted a worldwide license to Merck KGaA (MKGAF) for the development, manufacture and commercialization of tecemotide.

Oncothyreon carries a Zacks Rank #2 (Buy). Currently, Gilead Sciences GILD also looks attractive with a Zacks Rank #1 (Strong Buy).