Boston, MA 07/29/2014 (wallstreetpr) – During the 2013’s era of biotech boom, KaloBios Pharmaceuticals Inc (NASDAQ:KBIO) had debuted on the exchange with high promises to deliver, which had instantly caught attention of giants like Sanofi SA (ADR) (NYSE:SNY). The latter had agreed to partner KaloBios in a deal by paying $35 million and had announced $255 million payment on attainment of milestones. But, now half through 2014, the case is different.
On Monday, Sanofi SA (ADR) (NYSE:SNY) has backed out from the deal, thereby giving full rights of KB001-A back to KaloBios. KB001-A is a treatment in the middle of Phase II study, which aims to target ‘Pseudomonas aeruginosa (Pa)’, a bacteria resulting in pneumonia and lung infection. As of now, the reason for Sanofi’s exit is not clear, but KalaBios had instantly declared that it is looking for a new partner now. Following the news, the shares of KaloBios went in for a bloodbath, losing as much as 12% in after hours to $1.70. Despite all odds, KalaBios CEO David Pritchard appeared confident that KB0001-A will deliver the expected results. Pritchard said that they would soon be able to get another deal to progress to the next level, that is, Phase III.
The company has already enrolled nearly 180-patients to test the efficacy and safety of KB001-A as it plans to return top-line data by the year 2015. Also, KB001-A has been successfully through the Phase I and II study conducted on 35 patients, which led to the achievement of ‘Fast Track Designation’ by the FDA. But, after all said, the termination of contract by Sanofi SA (ADR) (NYSE:SNY) can be termed as a severe blow to KalaBios that recently halted development of one of its patented antibodies, called KB003, meant to treat severe asthma. The treatment failed to meet primary efficacy endpoints during Phase II trial, after which the company said that it is observing data in order to evaluate future steps for it. As of now, apart from KB001-A, KalaBios has KB004, another antibody to target tumors and malignancies, in its portfolio.
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