Analyst Summary
- Centessa Pharmaceuticals (UK) Limited, a subsidiary of Centessa Pharmaceuticals plc, entered into a License Agreement with Genmab A/S on February 14, 2025.
- Genmab gains an exclusive worldwide license to use Centessa’s LockBody platform for research against up to three undisclosed targets.
- Centessa will receive an upfront payment of $15 million and potential option exercise fees of up to $15 million.
- Centessa is eligible for approximately $230 million in potential development, regulatory, and sales milestones per product, plus tiered royalties.
- Genmab will conduct all research and development activities under the License Agreement.
Potential Implications
Company Performance
- Potential for increased revenue through upfront payment, option exercise fees, milestone payments, and royalties.
- Leveraging of Centessa’s LockBody platform without direct investment in research and development.
- Potential for long-term revenue stream from successful licensed products.
Stock Price
- Positive impact on stock price due to the potential for significant future revenue.
- Increased investor confidence due to partnership with Genmab.
- Potential for stock price volatility based on the progress of research and development activities.