Abgenix Case Study
A. Introduction:
Abgenix was a company founded in California who had a unique method for generating antibodies useful in treating a number of diseases, one of which was cancer. They named this unique method XenoMouse. Abgenix spent 7 years and $40 million to produce XenoMouse which was a genetically engineered mouse which could produce antibodies that would treat illnesses like cancer, transplant rejection and inflammation. B. Abgenix Ways To Generate Revenue:
Abgenix generated revenues in two different ways:
1- It licensed XenoMouse technology to numerous corporate collaborators including leading pharmaceutical companies. A collaborator paid an upfront fee, agreed to payments as the drug development program reached certain milestones and a royalty on sales should the drug be commercialized.
2- The second way Abgenix hoped to generate revenues was by pursuing the early stages of XenoMouse-based drug development, meeting with some success and then selling off the rights to develop and market the drug. C. Abgenix XenoMouse Generated Drugs in various stages of the FDA Process:
First of all we have to mention the Food and Drug Administration (FDA) processes. Before testing in humans was permitted, Preclinical Trials had to show sufficient evidence of safety and desired biological activity to gain FDA approval. Testing then proceeded through three phases with humans. Phase I focused on safety, Phase II on effectiveness against designated diseases and Phase III was large scale testing with the doses to be prescribed when product was sold commercially.
Abgenix had four XenoMouse generated drugs in different stages of the FDA process:
These are: 1-ABX-CBL used in graft versus host disease in Phase III 2-ABX-IL8 used in psoriasis and rheumatoid arthritis in Phase II 3-ABX-EGF used in dependent cancers in Phase I 4-ABX-RB2 used in organ transplant rejection in preclinical phase.
D. Abgenix Business Model:
Abgenix
Abgenix was a company founded in California who had a unique method for generating antibodies useful in treating a number of diseases, one of which was cancer. They named this unique method XenoMouse. Abgenix spent 7 years and $40 million to produce XenoMouse which was a genetically engineered mouse which could produce antibodies that would treat illnesses like cancer, transplant rejection and inflammation. B. Abgenix Ways To Generate Revenue:
Abgenix generated revenues in two different ways:
1- It licensed XenoMouse technology to numerous corporate collaborators including leading pharmaceutical companies. A collaborator paid an upfront fee, agreed to payments as the drug development program reached certain milestones and a royalty on sales should the drug be commercialized.
2- The second way Abgenix hoped to generate revenues was by pursuing the early stages of XenoMouse-based drug development, meeting with some success and then selling off the rights to develop and market the drug. C. Abgenix XenoMouse Generated Drugs in various stages of the FDA Process:
First of all we have to mention the Food and Drug Administration (FDA) processes. Before testing in humans was permitted, Preclinical Trials had to show sufficient evidence of safety and desired biological activity to gain FDA approval. Testing then proceeded through three phases with humans. Phase I focused on safety, Phase II on effectiveness against designated diseases and Phase III was large scale testing with the doses to be prescribed when product was sold commercially.
Abgenix had four XenoMouse generated drugs in different stages of the FDA process:
These are: 1-ABX-CBL used in graft versus host disease in Phase III 2-ABX-IL8 used in psoriasis and rheumatoid arthritis in Phase II 3-ABX-EGF used in dependent cancers in Phase I 4-ABX-RB2 used in organ transplant rejection in preclinical phase.
D. Abgenix Business Model:
Abgenix