By Tess Stynes
Inovio Pharmaceuticals Inc. (INO) said pharmaceutical giant
Roche Holding AG (RHHBY, ROG.VX, RO.EB) will pay as much as $422.5
million in an exclusive licensing agreement for Invio's
investigational gene-based vaccines for prostate cancer and
hepatitis B.
Inovio's shares were up 33% at $2.96 in recent premarket
trading.
The companies will collaborate on the two compounds--known as
INO-5150 for prostate cancer and INO-1800 for hepatitis B--which
are in preclinical development.
Under the agreement, Roche will pay $10 million upfront and as
much as $412.5 million in milestone payments. Additional
development milestone payments could also be made if Roche pursues
using the compounds to treat other illnesses.
Inovio is entitled to receive up to double-digit tiered
royalties on any product sales. Roche also obtained an option to
license additional vaccine opportunities in connection with a
collaborative cancer research program.
Roche's American depositary shares closed Monday at $63.39 and
were inactive premarket.
Write to Tess Stynes at tess.stynes@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires