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Regeneron in Strategic Immuno-Oncology Collaboration With ISA

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Regeneron Pharmaceuticals, Inc. (REGN - Free Report) and ISA Pharmaceuticals B.V., a clinical-stage immunotherapy company inked a clinical collaboration to advance ISA101, an immunotherapy targeting human papillomavirus type 16 (HPV16)-induced cancer, in combination with cemiplimab (REGN2810), a PD-1 (programmed cell death protein 1) antibody.

Regeneron and ISA will jointly fund and conduct clinical trials of the combination treatment in cervical cancer and head-and-neck cancer. Further, Regeneron will make an upfront payment and an equity investment in exchange for an option to an exclusive, global license for ISA101. 

So far this year, shares of Regeneron have gained 4.4% compared with the industry’s growth of 3%.

We note that cemiplimab is being jointly developed by Regeneron and Sanofi (SNY - Free Report) and was developed using the former's proprietary VelocImmunetechnology that yields optimized fully-human antibodies.  

The latest deal is a big positive for ISA as this gives a strong validation for its proprietary SLP (Synthetic Long Peptides) platform. On the other hand, Regeneron continues to expand and advance its immuno-oncology program. Per the company, early clinical results with ISA101 in HPV16-positive indications were encouraging, and the company is investigating the impact of adding cemiplimab in order to enable the body's immune system to attack the cancer.

 This month, Regeneron along with partner Sanofi announced positive top-line efficacy results from a pivotal phase II study of cemiplimab. The EMPOWER-CSCC 1 study is being conducted on 82 patients with a type of skin cancer: advanced cutaneous squamous cell carcinoma (CSCC).

The cemiplimab monotherapy study showed an overall response rate (ORR) of 46.3%. The median duration of response (DOR) had not yet been reached at the data cut-off point. At the time of this analysis, all patients had a minimum follow up of six months.

Zacks Rank & Stocks to Consider

Regeneron carries a Zacks Rank #3 (Hold). Some better-ranked health care stocks in the same space include Sucampo Pharmaceuticals and Corcept Therapeutics Incorporated (CORT - Free Report) . While Sucampo sports a ZacksRank #1 (Strong Buy), Corcept holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sucampo’s earnings per share estimates have moved up from 31 cents to $1.12 for 2017 and from $1.15 to $1.19 for 2018, over the last 30 days. The company delivered a positive earnings surprise in three of the trailing four quarters, with an average beat of 15.63%. The share price of the company has increased 20.3% year to date.

Corcept’s earnings per share estimates have moved up from 78 cents to 88 cents for 2018 over the last 60 days. The company pulled off positive earnings surprises in two of the trailing four quarters, with an average beat of 14.32%. The share price of the company has increased 162.4% year to date.

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