Here's Why Prima BioMed Is Up 15%

Shares of Prima BioMed Ltd (ADR) PBMD, an Australia-based biotechnology company that is engaged in research, development and commercialization of licensed medical biotechnology, surged higher by more than 20 percent early Thursday morning.

Prima BioMed announced it has entered into an agreement with Sydys Corporation in which Sydys will license Prima's CVac immuno-oncology program (including manufacturing protocols, clinical data, patents and know-how) and also oversees its future development.

Pirma BioMed will also receive a 9.9 percent stake in Sydys at the closing of the deal in consideration for the assets being transferred. In addition, if CVac is successfully commercializes, Prima could receive a payment of up to A$400 million, or approximately $293 million.

Marc  Voigt,  Prima's  CEO,  commented, "Following  extensive discussions  with a umber of third parties, we have reached what we consider to be an entrepreneurial solution which we believe best positions CVac for clinical success and, hopefully, commercialization. Importantly, this partnership continues the CVac program development without further resource commitment from Primae, while providing the potential for considerable future milestone and royalty payments over time. The ongoing development will be contingent on further successful capital raising for subsequent trials but we are confident that the Sydys team has the ability and connections in the US to undertake this program."

Shares traded recently at $1.09, up 15.8 percent.