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Biogen Licenses Amunix's XTEN Technology for Factor IX Drug

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Biogen Inc. (BIIB - Free Report) exercised its option to enter into an exclusive, global license agreement with California-based private biotechnology company, Amunix Operating Inc., to incorporate the latter’s proprietary XTEN half-life extension technology in developing a recombinant Factor IX candidate.

Biogen’s share price has gained 3.4% in the past one year compared with the Zacks classified Medical-Biomedical and Genetics industry’s fall of 17.3%.
The agreement is part of Biogen’s hemophilia business, which will be spinnig off on Feb 1, 2017. The new business will be called Bioverativ Inc. and will become an independent, publicly-traded company.

Bioverativ will focus on the research, development and commercialization of innovative therapies to address areas of serious unmet need for people with hemophilia and other rare blood disorders.

Per terms of the agreement, Amunix will receive an upfront $1.25-million payment and will also be entitled to receive up to $17.25 million in clinical and commercial milestone payments. Amunix will also receive royalties on commercial sales from Factor IX products that incorporate its XTEN technology.

The collaboration between Biogen and Ammunix dates back to 2011, when they entered into a Research and Option Agreement, under which the companies had agreed to utilize Amunix' expertise in protein half-life extension and its XTEN technology Biogen’s expertise in both hemophilia and engineering long-lasting coagulation factors.

Zacks Rank & Key Picks

Biogen currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the health care sector include Cambrex Corporation , Arena Pharmaceuticals, Inc. and Anika Therapeutics Inc. (ANIK - Free Report) . While Cambrex sports a Zacks Rank #1 (Strong Buy), Arena and Anika carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Cambrex has posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 19.78%. Its share price was up 31.2% in the past one year.

Arena has posted a positive earnings surprise in three of the four trailing quarters, with an average beat of 11.43%.

Anika’s earnings estimates for 2016 and 2017 were up 3.9% and 0.5% respectively over the last 60 days. The company recorded a positive earnings surprise in each of the last four quarters, the average being 33.14%. Its share price was up 36.9% in the past one year.

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