News that Roche has licensed Halozyme Therapeutics' drug delivery technology--Enhanze--in a deal worth up to $581 million sent Halozyme's stock up a whopping 60 percent. Halozyme gains $20 million up front for Roche's use of the technology for three specific drug targets and has an option to commercialize the technology on another 10 therapies over 10 years. Milestone payments on the first three programs could be worth up to $111 million with another $47 million on each of the next 10 programs. And Roche is investing $11 million in Halozyme, gaining a 5 percent stake of its common shares. Analysts liked the terms, noting that the pact marks a critical validation for Halozyme's work.
- see the press release on the pact
- here's the AP report on the deal
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