HBM Gets Health Boost From Drug Licensing Deals
Portfolio Pulse from The Bamboo Works
HBM Holdings' subsidiary Nona Biosciences has entered a licensing deal with Pfizer-owned Seagen Inc. for an antibody-drug conjugate (ADC) with an initial payment of $53 million and up to $1.05 billion in milestones. Despite this, HBM shares dropped due to the deal's perceived modesty compared to a larger deal between Sichuan Biokin and Bristol-Myers Squibb. HBM's revenue increased by 48% in the first half of the year, and the company turned a profit for the first time. Future revenues depend on clinical trial outcomes and partner decisions, with HBM's valuation still considered low compared to peers.
December 22, 2023 | 6:11 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Moderna's partnership with HBM's Nona Biosciences, which includes a $6 million advance and potential for $500 million in milestones, contributes to HBM's revenue growth.
Moderna's deal with Nona Biosciences is part of HBM's successful licensing strategy, which has led to increased revenue and the company's first profit.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 60
POSITIVE IMPACT
Pfizer, through its ownership of Seagen Inc., has entered a licensing deal with HBM Holdings' subsidiary for an ADC cancer treatment, with potential milestone payments up to $1.05 billion.
The deal with HBM's subsidiary could add a promising ADC to Pfizer's pipeline, potentially enhancing its oncology portfolio and future revenue streams.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Bristol-Myers Squibb's deal with Sichuan Biokin for an initial $800 million and over $8 billion in potential payments overshadows the HBM-Seagen deal, potentially affecting investor perception.
While the BMY deal is not directly related to Pfizer or HBM, its size compared to the HBM-Seagen deal may impact investor expectations and sentiment in the biotech sector.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 40
NEGATIVE IMPACT
Beigene Ltd. experienced the return of licensed-out drugs, impacting its earnings, which could reflect on the sector's volatility and investor caution.
The return of licensed-out drugs to Beigene suggests potential risks in the biotech licensing business, which may affect investor sentiment towards companies like HBM.
CONFIDENCE 65
IMPORTANCE 40
RELEVANCE 30