Evogene Stock Jumps on Cancer Drug Licensing Deal

Deal Sparks Major Stock Surge

Evogene Ltd. (NASDAQ:EVGN) shares surged 12.5% following the announcement of an exclusive worldwide licensing agreement for BMC128, a microbiome-based cancer therapeutic. The deal was signed between Evogene's subsidiary, Biomica, and Shanghai Lishan Biopharmaceuticals.

Overview of the Agreement

The agreement grants Lishan Biotech global rights to develop, manufacture, and commercialize BMC128. In return, Biomica will receive milestone payments and royalties on future sales. BMC128, which consists of four human gut bacterial strains, is designed to enhance anti-tumor immune activity and has shown a promising safety profile in its Phase 1 clinical study for renal and non-small cell lung cancer patients.

Market and Pipeline Impact

This partnership provides a clear development and commercialization path for BMC128, with Lishan Biotech planning to advance it into Phase 2 trials in China and the United States. The immediate stock surge reflects investor confidence in the program's potential to create significant value and generate future revenue streams for Evogene and Biomica in the oncology market.

Summary and Outlook

The licensing deal is a key milestone, validating Biomica's scientific platform and securing a committed partner to progress its lead asset. Future market response will depend on the successful advancement through clinical trials and eventual regulatory approvals in major global markets.

FAQ

Q: Why did Evogene's stock price increase?
A: The stock surged 12.5% after its subsidiary, Biomica, announced a global licensing agreement with Shanghai Lishan Biopharmaceuticals for its cancer therapeutic, BMC128.

Q: What is BMC128?
A: BMC128 is a first-in-class live biopharmaceutical drug designed to improve patient responses to immunotherapy by enhancing anti-tumor immune activity. It is currently completing a Phase 1 clinical study.

Source: Investing.com