LAVA Therapeutics N.V. (NASDAQ: LVTX) experienced a significant surge in its stock prices, rising by almost 36.84% after market hours on Friday. This incredible boost came shortly after Janssen Biotech, a subsidiary of Johnson & Johnson (NYSE: JNJ), announced the selection of a lead candidate for further development in clinical studies focused on cancer treatment.
This decision was made as part of a collaboration agreement between LAVA Therapeutics and Janssen Biotech, which was signed in May 2020. The joint study aims to explore and develop bispecific antibodies that can target gamma-delta T cells as a potential treatment for cancer.
Under the terms of the agreement, Janssen will take responsibility for the candidate’s clinical development, manufacturing, and commercialization. They will also bear all associated costs involved in these processes. In return, LAVA Therapeutics has the opportunity to earn milestone payments and royalties based on the sales of the developed products.
LAVA Therapeutics has faced a challenging year thus far, with a decline of 45.7% in its shares compared to the industry’s 9.4% downturn. However, the company remains steadfast in its focus on advancing the innovative Gammabody platform. This platform generates bispecific gamma-delta T cell engagers, which effectively target cancer cells and activate the immune response in patients.
The company is currently in the process of developing its lead candidate, LAVA-051, through a phase I/IIa dose escalation study. This study specifically targets multiple myeloma, chronic lymphocytic leukemia, and acute myeloid leukemia.
Currently, LAVA Therapeutics is concentrating on its lead candidate, LAVA-051, which is undergoing a phase I/IIa dose escalation study. The study aims to address multiple myeloma, chronic lymphocytic leukemia, and acute myeloid leukemia.
Moreover, LAVA Therapeutics expanded its potential cancer therapy portfolio by entering a licensing agreement with Seagen Inc. (NASDAQ: SGEN) in September 2022. The agreement focuses on the development of SGN-EGFRd2 (LAVA-1223), a treatment for solid tumors.
In connection with the agreement, LVTX received an upfront payment of $50 million. In addition, the company has the potential to earn up to around $650 million in milestone payments for development, regulatory approvals, and commercial achievements from Seagen.
