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Sky is the limit for Agenus (NASDAQ: AGEN)

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There comes a time in Stock Exchanges across the globe when all of a sudden a stock starts to perform exceedingly well. It seems as if all the investors are vouching for that particular stock. The growth becomes unprecedented in the history and the stock price goes sky high. One such stock these days in United States of America is Agenus (NASDAQ: AGEN).

Agenus (NASDAQ: AGEN) is a small company working on bio technology. However, it seems as if Agenus (NASDAQ: AGEN) has found the secret recipe for success and has managed an increase of 31% in just a few days. The driving factor behind this abrupt increase and interest in Agenus (NASDAQ: AGEN) is due to a global alliance that it has recently entered into with Incyte (NASDAQ: INCY).

Incyte (NASDAQ: INCY) is one of the largest bio tech company in the world and the decision to enter in to an alliance with Agenus (NASDAQ: AGEN) is part of its growth plan. On the other hand, Agenus (NASDAQ: AGEN) will now be open to global audience. At the moment Agenus (NASDAQ: AGEN) doesn’t have the resources and means to market its products to the international buyers and with this alliance it will move one step closer to becoming an international name.

Its new partner Incyte (NASDAQ: INCY) will become a partner in profits and in the new drugs that Agenus (NASDAQ: AGEN) develops. That is not all, Agenus (NASDAQ: AGEN) will also be assisted by its new partner which has more expertise in drug making.

Incyte (NASDAQ: INCY) will pay an upfront payment of $25 million to Agenus (NASDAQ: AGEN) as part of the deal. In return Agenus (NASDAQ: AGEN) will issue 7.76 million share to its partner at a cost of $4.51. Apart from all this Incyte (NASDAQ: INCY) will also be a partner of 11% in case the company is diluted in future. Incyte (NASDAQ: INCY) has already started to get returns from this deal due to the surge in shares of Agenus (NASDAQ: AGEN). On paper Incyte (NASDAQ: INCY) has earned $6.4 million after the surge in shares of its new partner.

Another clause that will help Incyte (NASDAQ: INCY) in future is that it will be a partner of 50% of the two anti bodies developed by Agenus (NASDAQ: AGEN) after this alliance. On the other hand, Agenus (NASDAQ: AGEN) which received almost 5 times its revenue in one go will now be able to invest more on research and developing new antibodies. The $25 million which as stated above would be used to develop new anti bodies can quadruple the earnings of Agenus (NASDAQ: AGEN) within a short span of time.

Agenus (NASDAQ: AGEN) is all set for future now. It has a lot of money in hand and the stocks are on the rise. It already knows that the two new anti bodies developed will we catered to the global audience and will enhance the goodwill of the company. How the company will perform now is very easy to predict.

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