LEXINGTON, Mass. - Agenus Inc . (NASDAQ: NASDAQ:AGEN), an immuno-oncology company, has secured a $22 million mortgage for its biologics facility in Berkeley, California, and a property in Vacaville, California. The financing, arranged by L&L Capital, provides Agenus with $20 million in net proceeds after expenses, enhancing its cash position.
The two-year mortgage comes with a unique repayment structure involving 50% cash and 50% common stock, with interest rates at 12% for the first year and 13% for the second year. This financial maneuver is part of Agenus's Strategic Operational Realignment Plan, which aims to focus the company's resources on developing botensilimab and balstilimab (BOT/BAL) for MSS colorectal cancer (CRC).
Agenus anticipates a 60% reduction in annual external expenditures and is transitioning its CMC capabilities into a fee-for-service biologics manufacturing business. These changes are expected to reduce the company's cash burn to around $100 million by FY 2025, contingent on finalizing additional strategic deals.
BOT/BAL has shown promising clinical activity in MSS CRC and other cancers resistant to current therapies. Agenus is moving forward with late-stage development and regulatory strategies for MSS CRC, aiming for both regional and global registrations.
The company, founded in 1994, is known for its comprehensive pipeline of immunological agents and end-to-end development capabilities, including commercial and clinical cGMP manufacturing, research, discovery, and global clinical operations.
This press release contains forward-looking statements about Agenus's BOT/BAL programs and regulatory timelines. These statements are based on current expectations and involve risks and uncertainties that could cause actual results to differ materially, as detailed in the Risk Factors section of Agenus's most recent Annual Report and subsequent Quarterly Reports filed with the Securities and Exchange Commission.
The information reported is based on a press release statement from Agenus Inc.
In other recent news, Agenus Inc. has experienced key developments in its operations. The biotechnology company recently saw its share target cut to $7 from $8 by H.C. Wainwright following its third-quarter earnings report. The firm has maintained a neutral stance on Agenus' stock, with this revision reflecting concerns over increased expenses as the company progresses with its clinical programs.
Agenus has made significant strides in its BOT/BAL cancer treatment therapy, which shows promise for microsatellite stable colorectal cancer. The company has completed a meeting with the FDA regarding this treatment and is planning to present more mature Phase 2 data in 2025. The European Medicines Agency has agreed on the dose selection and trial design for the upcoming Phase 3 trial.
Financially, Agenus reported a decrease in cash balance from the previous year, standing at $44.8 million. However, it raised an additional $7.1 million post-quarter and is actively pursuing asset monetization and strategic transactions. The initiation of the Phase 3 trial, expected in 2025, is contingent on securing financing through these means.
These are recent developments in Agenus's journey to potentially transform the landscape of cancer treatment. The company is in discussions with regulatory agencies like the EMA and FDA to facilitate the advancement of Phase 3 studies.
InvestingPro Insights
Agenus Inc.'s recent financial maneuvers, including the $22 million mortgage for its biologics facilities, align with the company's efforts to strengthen its cash position amid challenging market conditions. According to InvestingPro data, Agenus has a market capitalization of $79.29 million, reflecting its current valuation in the biotech sector.
The company's focus on developing botensilimab and balstilimab for MSS colorectal cancer comes at a critical time. InvestingPro Tips indicate that Agenus is "quickly burning through cash" and that "short term obligations exceed liquid assets." These insights underscore the importance of the company's Strategic Operational Realignment Plan, which aims to reduce cash burn significantly.
Despite a revenue of $160.43 million in the last twelve months, Agenus faces profitability challenges. An InvestingPro Tip notes that the company "suffers from weak gross profit margins," which is reflected in the negative gross profit margin of -17.88% for the same period. This context helps explain Agenus's strategic shift towards a fee-for-service biologics manufacturing business model.
The stock's recent performance has been volatile, with a significant 26.59% return over the last week, contrasting with a -75.18% return over the past six months. This volatility aligns with the company's ongoing restructuring efforts and the market's reaction to its strategic decisions.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Agenus, providing a deeper understanding of the company's financial health and market position.
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