Zacks_Analysts' Blog : Good News for Celldex Therapeutics - Analyst Blog

Celldex Therapeutics, Inc.’s (CLDX) pipeline received a boost when the company’s injectable vaccine rindopepimut (CDX-110), which is being developed to treat patients suffering from glioblastoma, performed well in a mid-stage study (n=65). The disease is the most common and aggressive form of brain cancer.

The data, presented at a medical conference in Canada, revealed that treatment with the vaccine prolonged the survival rate in patients newly diagnosed with glioblastoma multiforme. The data, consistent with previous studies, revealed that the disease  did not progress in two-thirds of the patients 8.5 months after diagnosis or 5.5 months after being treated with the vaccine.

The result reflected a marked improvement over the predetermined progression-free rate of 53%. Celldex intends to initiate a late-stage study to evaluate the candidate, an immunotherapy vaccine targeting a molecule that is present only in tumor cells, in the second half of 2011.

We remind investors that all global rights for the development and commercialization of CDX-110 reverted to Celldex from November 1, 2010 following  Pfizer’s (PFE) decision in September 2010, to pull out of an agreement to co-develop the brain tumor vaccine. The deal, inked in 2008, was scrapped since the development of the vaccine no longer constituted a strategic priority for the pharmaceutical giant.

Celldex Therapeutics, founded in 1983 and headquartered in Needham, Massachusetts, competes with Dendreon Corporation (DNDN) amongst others. We note that Dendreon launched Provenge (sipuleucel-T) in the US earlier in the year. Provenge, a therapeutic vaccine indicated to treat advanced prostate cancer in men, does so by stimulating the body's own immune system to attack cancer cells.

Currently, we have a long-term Neutral stance on Celldex supported by the Zacks #3 Rank (short-term Hold rating) carried by the company.