Nano-cap CymaBay Therapeutics Inc (Nasdaq:CBAY) shares are up 42% in pre-market trading today after gaining 9.83% at yesterday’s close to 1.90 a share.
The pre-market gains came after CymaBay Therapeutics Inc entered into into an exclusive licensing agreement with Kowa Pharmaceuticals America for the commercialization and development of Arhalofenate in the U.S.
Under the terms of the agreement, CymaBay will receive up to $15 million in upfront and near-term milestone payments and is eligible to receive up to an additional $190 million in payments based upon the achievement of specific development, regulatory and sales milestones.
CymaBay is also eligible to receive tiered, double digit royalties on future sales of arhalofenate products.
Kowa will be responsible for all development and commercialization costs. CymaBay had earlier reached agreement with the Food and Drug Administration (FDA) on the size and scope of the Phase 3 program which is estimated to cost $100 million.
CymaBay retains full development and commercialization rights for the rest of the world. Locust Walk served as a transaction advisor to CymaBay.
In December, CymaBay Therapeutics announced the appointment of Robert Booth, Ph.D. and Caroline Loewy to the company’s Board of Directors.
Dr. Robert Booth is the Founder and Chief Executive Officer of Virobay, Inc., a drug discovery and development company.
He served concurrently as an Operating Partner and Senior Advisor at TPG Biotech. Dr. Booth is also the Executive Chairman and co-founder of Ab Initio Biotherapeutics and of CuraSen Therapeutics.
Caroline Loewy is a biopharmaceutical and financial executive with over 25 years of experience in the field.
She is a Co-Founder and the Chief Business Officer and Chief Financial Officer of Achieve Life Sciences, as well as a consultant providing strategic advisory services for biopharmaceutical companies. – BusinessNewsAsia.com