Genentech is an excellent, top tier partner for Bicycle Therapeutics (BCYC), a recommendation in our model portfolio, notes JohnMcCamant, editor of Medical Technology Stock Letter— and a participant in The Interactive MoneyShow Virtual Expo, July 26-28. Register here for free.
Bicycle Therapeutics has exercised its second option with Genentech to discover, develop and commercialize novel Bicycle®-based immuno-oncology drugs. The two companies will collaborate on the discovery and pre-clinical development of novel Bicycle-based immunotherapies against multiple targets.
In February 2020, Genentech was granted two collaboration expansion options, each with the right to add one additional program to the collaboration in exchange for a $10 million payment to Bicycle.
Genentech is a world leader in oncology and has significant experience in developing new technologies. Taking the second drug development option is a strong validation BCYC’s technology platform.
BCYC announced that an article highlighting preclinical data from BT7480, a Bicycle tumor-targeted immune cell agonist® (Bicycle TICA™) targeting Nectin-4 and agonizing CD137 (4-1BB), was published in the Journal of Medicinal Chemistry. BT7480 is currently in Phase I development with dose escalation ongoing.
Bicycle has bounced nicely since the unwarranted bear raid at ASCO (American Society of Clinical Oncology) as all their development programs are progressing smoothly. Genentech is an excellent partner as they are a world leader in oncology and have significant experience in developing new technologies.
The company’s peptides can be applied as toxin conjugates (BTC, akin to antibody-drug conjugates) or Bicycle TICAs (“tumor-targeted immune cell agonists”; cell engagers).
Both are areas in which Genentech has significant experience, particularly developing drug conjugates. Overall, this expanded drug discovery program with Genentech provides significant validation. The stock is a buy under $50 per share. Our target price is $75.