Agenus Inc. (NASDAQ:AGEN) stock has been consistent in recent weeks after a leap at the beginning of the year. In the last trading session stock lost 0.29% to close the day at $3.42 per share.
The consistency in trading is a result of the result announcement that the company is set to launch a Biotech Electronic Security Token that enables investors to directly participate in the company’s lead Immuno-oncology assets while protecting shareholder equity.
Adopting blockchain in healthcare
Tokenization is rapidly growing and with financial regulatory changes more healthcare systems are adopting blockchain technology. Blockchain gives new options to fund selected products and with the digital securities it opens up unprecedented opportunities for financial investments in product development in the pharmaceutical sector.
Agenus CEO and Chairman, Garo Armen, indicated that they were making the announcement which is its first kind of asset supported by digital security offering for healthcare and it will be an opportunity for financing. He added that the company believes that the unique structure of the system will open avenues to allow investment of accredited investors on the development of their lead therapeutic products. The Biotech Electronic Security System powered through blockchain tech will enable Agenus revolutionize their financing to product development.
How will the security token work?
Agenus indicated that each token issued will be equal to a portion of sales of the AGEN2034 the Agenus anti-PD-1 antibody. The drug is currently in clinical trials and has potential of having returns claimable through the token-by-token redemption once commercialization of AGEN2034 commences in the U.S.
Accredited investors will acquire the BEST securities under the terms of the initial Digital Security offering. The investments are likely to accelerate development, commercial distribution as well as indication expansion of AGEN2034. The innovation is in line with the company’s mission of accelerating development of immune-oncology therapies as well as expansion of their reach to more indications.
Recently the company announced a $150 million agreement with Gilead cash which they will receive upfront plus an estimated $1.7 billion in future milestones and fees to fund the development of their products.