Aptevo Therapeutics Inc. (NASDAQ:APVO) Expands ADAPTIR Platform

Aptevo Therapeutics Inc. (NASDAQ:APVO)

Aptevo Therapeutics Inc. (NASDAQ:APVO) traded higher after announcing the expansion of its protein therapeutic platform ADAPTIR, into new mechanisms of action including T-Cell engagers targeting CD3. In a presentation, at the World Bispecific summit, the company highlighted new improvements that it says have led to new ADAPTIR candidates.

ADAPTIR Platform Expansion

According to Aptevo Therapeutics Inc. (NASDAQ:APVO)’s Principal Scientist, Dr. Peter Pavlik, expansion of the ADAPTIR platform highlights its flexibility and versatility in generating multiple Bispecific candidates. The attributes have allowed the company to come up with T-cell engager APVO436 which targets CD123 known to cause hematological malignancies.

“Our next generation candidates, like APVO436, are designed to be delivered by intravenous dosing. With two ADAPTIR candidates currently in clinical development and a broad portfolio of Bispecific advancing in preclinical development, Aptevo has a rich pipeline of assets in the emerging field of targeted antibody therapeutics,” said Dr. Pavlik.

APVO Stock Performance

Aptevo Therapeutics Inc. (NASDAQ:APVO) bounced back after plummeting to multi-year lows of $1.15 a share continues. Earlier in the year, the stock spiked to $3.85. However, the stock is still down for the year, after retreating to end Thursday’s trading session at $2.73 a share.

Aptevo Therapeutics Inc. (NASDAQ:APVO)

Renewed investors interest follows achievements on the development of the ADAPTIR platform, which is key to the development of the company’s pipeline of drugs. The clinical stage biopharmaceutical company is currently working on APVO414 for the treatment of metastatic castration-resistant prostate cancer, as well as Otlertuzumab for the treatment of chronic lymphocytic leukemia.

Credit Facility Agreement

Separately, Aptevo Therapeutics Inc. (NASDAQ:APVO) has amended the terms of its credit agreement with Midcap Financial Trust. The amendment allows the company to keep a $20 million funding tranche. The two companies have also agreed to eliminate the option of the second tranche of $15 million.

“We are pleased to continue our relationship with MidCap Financial. They are a knowledgeable partner who understands the life sciences sector and we appreciate their continued interest in and commitment to our business,” said Jeff Lamothe, Chief Financial Officer.

Amendment of the credit facility follows the sale of three hyperimmune products by Aptevo Therapeutics Inc. (NASDAQ:APVO) to Saol Therapeutics for $74.5 million. The three products acquired include WinRho SDF for the treatment of autoimmune platelet disorder, HepaGam B for the prevention of Hepatitis B following liver transplantation and VARIZIG for treatment following varicella Zoster virus exposure.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Aptevo Therapeutics Inc (NASDAQ:APVO) Sells Product Lines For $74.5 Million

Aptevo Therapeutics Inc (NASDAQ:APVO)

Aptevo Therapeutics Inc (NASDAQ:APVO) has reached an agreement for the sale of its three hyperimmune products, WinRho SDF, HepaGam, and Varizig. The sale is set to inject $74 Million into the company’s balance sheet. Investors reacted to the news by sending the stock up over 58%.

Stock Performance

Shares of Aptevo Therapeutics Inc (NASDAQ:APVO) have been trading in a downtrend for the better part of the year. The sell-off has seen the stock reach lows of $1.07 a share. However, it appears the spin-off news has reinvigorated investor’s sentiments on the stock, seen by the recent rally to $2.40 a share.

Aptevo Therapeutics Inc (NASDAQ:APVO)
One month stock price chart for APVO

It awaits to be seen if the proposed sale to Saol Therapeutics will continue to fuel the current bullish momentum. The selloff also comes at a time when Aptevo Therapeutics Inc (NASDAQ:APVO) has confirmed the end of its partnership with MorphoSys AG for the joint development and commercialization of MOR209/ES414, a novel treatment for certain types of mCRPC prostate cancer.

Assets Divestiture

Under the terms of the definitive purchase agreement, Saol Therapeutics is to pay an upfront $6 million for the three hyperimmune products. An additional $7 Million payment is to come into effect depending on the achievement of gross profit milestones. Aptevo is also on course to receive up to $2 million related to certain accounts receivable.

Aptevo Therapeutics Inc (NASDAQ:APVO) plans to use part of the funds from the divestiture to pay part of its debt to Midcap Financial. Remaining funds are to be used to advance clinical and preclinical ADAPTIR candidates.

“With a deal value of up to $74.5 million, representing approximately 2.8 times both our current market capitalization on August 30, 2017, and our 2016 annual revenue. We view this as a very attractive opportunity to monetize our non-core assets and not dilute our stockholders,” said Marvin L. White, President, and Chief Executive Officer.

Separately, Aptevo Therapeutics Inc (NASDAQ:APVO) has confirmed it will retain worldwide development and commercialization rights for MOR209/ES414 following the termination of a partnership with MorphoSys AG. The company is in the process of carrying out the first stage of a Phase 1 continuous infusion, dose escalation clinical study. The study seeks to evaluate the safety and tolerability of APVO414 in patients with mCRPC.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $APVO and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.

Which Way for Aptevo Therapeutics Inc (NASDAQ:APVO)?

Aptevo Therapeutics Inc (NASDAQ:APVO)

Shares of biotechnology company Aptevo Therapeutics Inc (NASDAQ:APVO) gained over 7% on Friday, one day after establishing a new 52-weekly low of $1.68. One year ago, in July of 2016, APVO shares traded above $8 but within six months had slid below $3 and began moving in a year-long trading range between $1.70 and $3.

$APVO
Candle Bar Graph $APVO

Shares jumped on the news that Aptevo Therapeutics Inc (NASDAQ:APVO), based in Seattle, WA, and Alligator Bioscience (Nasdaq Stockholm: ATORX), a biotechnology company developing antibody-based pharmaceuticals for tumor-directed immunotherapy, announced that they have entered into an agreement to co-develop an immunotherapy bispecific antibody candidate. The new drug candidate was developed using Aptevo’s technology platform and includes proprietary binding elements generated by Alligator’s ALLIGATOR-GOLD® antibody library.  Initiation of cell line development for the manufacturing of clinical material is expected to begin shortly. Under the terms of the agreement, the parties will jointly own and share equally in the development costs associated with advancing this candidate through to the end of Phase 2 clinical development.

Per Norlén, Chief Executive Officer of Alligator Bioscience, said in the press release “Our technology platform enables the generation of highly functional antibodies with optimal stability and manufacturing properties, merged into an exceptional bispecific antibody using Aptevo´s ADAPTIR platform. We look forward to advancing our collaboration with Aptevo on this promising new therapeutic approach.”

Shareholders likely welcomed the news despite the poor historical performance of APVO shares. YTD APVO shares have lost over 25%, and are down over 77% for the year. Losses have expanded since 2012 when the per share loss was posted at (-$2.21). By 2016 the per share loss was $5.55. However, it should be noted that 2016 sales of $36.4 million was an improvement over 2015’s figure of $33.6 million. The lone analyst that covers APVO shares rates them a “Strong Buy”.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $APVO and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms