Bullish indicating open at $55-$60, IPO prices at $37
Investing.com -- Amphastar Pharmaceuticals (NASDAQ:AMPH) stock jumped 5.6% after the biopharmaceutical company announced an exclusive licensing agreement with Nanjing Anji Biotechnology for three proprietary peptide therapies targeting oncology and ophthalmology.
The agreement grants Amphastar exclusive rights to develop, manufacture, and commercialize these peptide products in the United States and Canada. The first product features an endogenous peptide with a novel mechanism that potentially suppresses growth and metastasis of multiple poorly treated cancers. The second is a peptide-docetaxel conjugate designed to improve selectivity and reduce toxicity of current taxane therapies, while the third is an anti-VEGFR peptide developed as a topical eye drop for wet age-related macular degeneration.
Amphastar made an initial payment of $6 million to Anji, consisting of a $0.75 million earnest money payment and a $5.25 million upfront payment. The agreement includes potential additional payments of up to $42 million in development milestones and up to $225 million in sales milestones.
The deal also stipulates 5% royalty payments on net sales to Anji, with a maximum accumulated amount of $60 million for each licensed product. In total, Anji may receive up to $453 million over the lifetime of the agreement.
The licensing term will expire on the tenth anniversary of the first commercial sale of each product in the applicable region, with Amphastar having the right to extend for an additional ten years.
This partnership significantly expands Amphastar’s pipeline in high-growth therapeutic areas and builds on the company’s experience in developing and commercializing peptide products.
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