SGX shares soar on Novartis CML pact

Shares of SGX Pharmaceuticals jumped 40 percent this morning after the company announced it had signed a licensing deal worth up to $515 million with Novartis. In the deal, SGX will develop inhibitors for chronic myelogenous leukemia through Phase I. Novartis--which is paying $25 million upfront--will be responsible for late-stage development work. Researchers will look to provide a new therapy for people who develop a resistance to Novartis' Gleevec, which inhibits chromosomal abnormalities linked to leukemia.

SGX is retaining some co-commercialization rights of new oncology products in the U.S. SGX is planning on ramping up a North American commercial office with the planned launch of Troxatyl for third-line CML in the second half of next year. Troxatyl is currently in a Phase II/III trial.

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