Shares of GTC Therapeutics were shooting up this morning after the company announced it had inked a $257 million licensing deal with Ovation Pharmaceuticals for its blood clotting therapy ATryn. Ovation gets sales and marketing rights to the U.S. market while GTC gets a manufacturing deal and royalties--in addition to the milestones. The drug is being developed ATryn for hereditary antithrombin deficiency, a genetic disorder that prevents blood from clotting normally.
GTC, a transgenics drugmaker which uses genetically modified animals to manufacture product, doesn't get a whole lot of that money up front, though. There's $3 million paid on closing and another $2 million "expected this year." A total of $9 million is available through approval.
"Ovation's track record, award winning commercial capabilities, and their focus on hematology, make them an excellent collaboration partner as well as a strong match to maximize ATryn's potential as the market's only recombinant antithrombin," said GTC CEO Geoffrey F. Cox, Ph.D. The company's stock was up 12 cents to 51 cents this morning on the news.
- check out GTC's release