Leerink Partners reiterated an Outperform rating on Five Prime Therapeutics (NASDAQ: FPRX) following an announced exclusive $1.74Bn license and collaboration agreement with Bristol-Myers Squibb Company (NYSE: BMY) for the development and commercialization of FPRX’s CSF1R antibody program.

Analyst Michael Schmidt commented, "This morning FPRX and BMY (OP) announced an exclusive $1.74Bn license and collaboration agreement for the development and commercialization of FPRX’s CSF1R antibody program, replacing the two companies' prior clinical trial collaboration. In our view, the deal is very attractive as it will enable FPRX: a) to fully tap the potential FPA008 in combinations with Opdivo and other agents, and b) to further strengthen and accelerate its pipeline programs with a strong cash position of ~$530M post-deal. We see significant upside to FPRX' current valuation with the stock trading just above cash, driven by advancement of FPA008 in IO combinations, "precision oncology" products FPA144 (anti-FGFR2b) and FP1039 (licensed to GSK [MP]) as well as its new immune checkpoint modulators. Reiterating OP rating on FPRX."

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Shares of Five Prime Therapeutics closed at $16.91 yesterday.

Analyst Comments

Oppenheimer Raises Price Target Following Five Prime Therapeutics' (FPRX) Announced Licensing Agreement with BMY October 19, 2015 6:42 AM Notable 52-Week Highs and Lows 10/15: (FPRX) (NKE) High; (STX) (MTW) (GRMN) LowOctober 15, 2015 3:26 PM Bristol-Myers Squibb (BMY) Names New Business Development SVPOctober 15, 2015 2:20 PM Bristol-Myers Squibb Appoints Paul Biondi Senior Vice President, Head of Business DevelopmentOctober 15, 2015 2:12 PM Unusual 11 Mid-Day Movers 10/15: (FPRX) (AFMD) (DXCM) Higher; (IMPR) (VAC) (ACST) LowerOctober 15, 2015 12:54 PM Pre-Open Stock Movers 10/15: (FPRX) (BOFI) (DXCM) Higher; (IMPR) (MTW) (VRX) (STX) (GRMN) (HCA) (NFLX) Lower (more...)October 15, 2015 9:31 AM Five Prime Therapeutics (FPRX) Sees Windfall on Anti-CSF1R Collaboration Agreement (BMY)October 15, 2015 9:20 AM Ovid Therapeutics Announces Appointment of Dr. Anna Kazanchyan to Senior Vice President, Business DevelopmentOctober 15, 2015 8:00 AM Five Prime Therapeutics (FPRX) Enters Collaboration with Bristol-Myers Squibb (BMY) Worth Up to $1.74BOctober 15, 2015 6:06 AM Five Prime Therapeutics to Host Conference Call on Worldwide License and Collaboration Agreement With Bristol-Myers Squibb for CSF1R Antibody ProgramOctober 15, 2015 4:05 AM Five Prime Therapeutics to Host Conference Call on Worldwide License and Collaboration Agreement With Bristol-Myers Squibb for CSF1R Antibody ProgramOctober 15, 2015 4:05 AM Bristol-Myers Squibb Enters Into Exclusive Worldwide License and Collaboration Agreement With Five Prime Therapeutics for Colony Stimulating Factor 1 Receptor (CSF1R) Antibody ProgramOctober 15, 2015 4:00 AM Bristol-Myers Squibb Enters Into Exclusive Worldwide License and Collaboration Agreement With Five Prime Therapeutics for Colony Stimulating Factor 1 Receptor (CSF1R) Antibody ProgramOctober 15, 2015 4:00 AM Bristol-Myers Squibb Enters Into Exclusive Worldwide License and Collaboration Agreement With Five Prime Therapeutics for Colony Stimulating Factor 1 Receptor (CSF1R) Antibody ProgramOctober 15, 2015 4:00 AM Bristol-Myers Squibb Enters into Exclusive Worldwide License and Collaboration Agreement with Five Prime Therapeutics for Colony Stimulating Factor 1 Receptor (CSF1R) Antibody ProgramOctober 15, 2015 4:00 AM Market’s Only Cancer Immunotherapy ETF LaunchesOctober 14, 2015 9:05 AM Bristol-Myers Squibb's Ready. Raise. Rise.™ Recognizes 23 Cancer Advocacy Groups in Immuno-Oncology Research Awareness CampaignOctober 13, 2015 6:59 AM