Immuno-oncology firm Agenus is set to introduce Biotech Electronic Security Token (BEST), a new way to fund the development of its cancer drug candidate AGEN2034.
BEST is a blockchain-based digital security offering and said to be the first of its kind in healthcare industry.
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Agenus added that the digital token will enable investors to directly invest in single products and will have a limited affect on shareholders’ equity.
BEST will be tied to AGEN2034, an anti-PD-1 antibody currently undergoing a pivotal clinical trial; each token will be linked to a portion of potential future US sales of the product, and can be redeemed once sales commence.
The company is seeking investments of up to $100m via the new financing approach, to support the development, commercialisation, distribution and indication expansion of the drug candidate.
Digital investment group Atomic Capital will manage the investor participation and validation.
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By GlobalDataAgenus chairman and CEO Garo Armen said: “Today, by announcing the first of its kind asset backed digital security offering in healthcare, we open the doors for a transformative financing vehicle.
“We believe this unique structure will pave the way for allowing targeted investment by qualified investors in the development of therapeutic products. This instrument, powered by blockchain technology, enables us to revolutionise the financing of drug development.”
The company expects the new financing model to be adopted by the healthcare industry in the future. However, the digital securities are yet to be approved by regulators, noted Bloomberg.
Agenus is primarily engaged in discovery and development of immunotherapies for cancer. Its pipeline includes multiple early phase programmes.
Last month, the company partnered with Gilead Sciences to drive the development and commercialisation of up to five immuno-oncology (I-O) candidates.
The deal involves $150 in upfront payment, along with approximately $1.7bn in potential future fees and milestones from Gilead.
