Pfizer license of Avant brain-cancer drug worth potential $440M

Avant Immunotherapeutics Inc. has agreed to license its vaccine for brain cancer to drug giant Pfizer Inc. for an initial sum of $40 million, the companies report.

Needham-based Avant (Nasdaq: AVAN) said Pfizer also plans to invest $10 million in Avant as part of the deal. The agreement includes milestone payments of more than $390 million linked to development of the vaccine, called CDX-110. Avant would also receive royalties from Pfizer on sales of the vaccine, which is now in Phase 2 clinical trials for a type of brain cancer called glioblastoma multiforme.

The deal is subject to standard federal approvals and is due to close in the second quarter of 2008.

Content Continues Below

The vaccine is designed induce the immune system to attack a tumor protein, EGFRvIII, which is linked to the growth of cancer cells.

New York-based Pfizer would also have rights to use the EGFRvIII vaccines for other diseases, according to the companies.

Avant reported a 2007 net loss of $21.6 million on revenue of $5.1 million.