Prima receives milestone payment for anticancer antibody program

Biotech company Prima BioMed (ASX:PRR) will receive a clinical milestone payment from healthcare company Novartis relating to the latter’s IMP701 LAG-3 antibody, which is being trialled for the treatment of cancer.

The payment is the result of a commercial licensing and collaboration agreement made between Immutep and CoStim Pharmaceuticals in September 2012, under which CoStim obtained a licence to develop and commercialise antagonistic LAG-3 antibodies. CoStim was bought by Novartis in February 2014, with the acquisition of Immutep by Prima following in December.

Immutep developed IMP701 as a therapeutic antibody to target LAG-3. The antibody works to both activate effector T cells (by blocking inhibitory signals that would otherwise switch them off) and at the same time inhibit regulatory T cell function that normally prevents T cells from responding to antigen stimulation. The antibody therefore removes two brakes that prevent the immune system from responding to and killing cancer cells.

Novartis now has full responsibility for the continued development of the antibody program, while Prima is eligible to receive further potential development-based milestone payments and royalties on sales following commercialisation of the products.

“There is strong preclinical evidence that antibodies to LAG-3 can promote an increased and sustained anticancer immune response,” said Prima CEO Marc Voigt. “We are delighted that Novartis has now moved that concept into the clinic with help from our work in the field.”

Prima BioMed (ASX:PRR) shares were trading 13.04% higher at $0.052 as of around 4 pm on Friday.