Agenus Inc. (NASDAQ:AGEN) Deal With Incyte Corp. (INCY) Looks Good

Agenus Inc. (NASDAQ:AGEN)

Shares of small-cap Agenus Inc. (NASDAQ:AGEN) are up, on heavy volumes, on news that Incyte Corporation (NASDAQ:INCY) has essentially substituted a development and commercialization agreement into what essentially amounts to a “Call” option on future revenues of Agenus’ drugs GITR and OX40. The new agreement gives all future development and commercialization responsibilities to Incyte. Agenus receives a $28 million up-front payment and royalty payments on 15% of global net sales. AGEN shares are up over 10%. The ongoing TIM-3 and LAG-3 antibody programs remain royalty-bearing programs, at tiered rates of 6 to 12 percent, with Incyte retaining exclusive world-wide clinical development and commercial responsibilities. Also released this morning was news that Incyte would buy 10 million shares of AGEN at $6/share.

Lexington, MA-based Agenus Inc. (NASDAQ:AGEN) discovers and develops cancer treatments that engage the body’s immune system. Incyte Corporation (NASDAQ:INCY), based in Wilmington, DE, is a $23 billion company discovers, develops, and commercializes proprietary therapeutics in oncology in the United States and internationally.

Agenus Inc. (NASDAQ:AGEN) has an impressive amount of product in their pipeline. Five drugs are in pre-clinical data gathering. Four are in Phase 1 clinical trials, one is in its Phase 2 clinical trial, and two are completing their Phase 3 trials.

In 2014 Agenus Inc. (NASDAQ:AGEN) reported sales of just $7 million but in 2015 that figure improved to $24.8 million. However AGEN shareholders have experienced EPS losses for the past five years – $1.21, $$0.51, $1.12, $0.71, and $1.13 in 2015. Four analysts cover AGEN and three rate the shares as a “Strong Buy” while one rates AGEN shares as a “Hold”.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

2/14/2017
Ticker Symbol AGEN
Last Price a/o 10:47 AM EST  $                      4.62
Average Volume                1,030,000
Market Cap (mlns)  $                  354.07
Sales (mlns) $24.60
Shares Outstanding (mlns) 85.94
Share Float (mlns) 81.86
Shortable Yes
Optionable Yes
Inside Ownership 1.60%
Short Float 15.21%
Short Interest Ratio 12.08
Quarterly Return -20.16%
YTD Return 0.00%
Year Return 45.58%