Collaboration Deal With Amgen Sends Advaxis Shares Sharply Higher

Advaxis, Inc. ADXS is the biggest gainer in the collaboration deal with Amgen Inc. AMGN sending the stock more than 30 percent at one point of time in the pre-market trading on Tuesday morning. The two companies struck a collaboration deal for the development, as well as, commercialization of ADXS-NEO meant for the treatment of cancer immunotherapy. According to the deal, Amgen would get global rights to develop and commercialize the investigational drug by paying an upfront payment of $40 million apart from buying Advaxis shares worth $25 million. Advaxis would also have the potential of earning a maximum of $475 million with high single-digit to mid-double digit royalty payments depending on the global sales. Its president and CEO, Daniel O'Connor, said, "With Amgen's resources, worldwide reach and a culture that embraces science and innovation, we are positioned to accelerate the clinical development program for ADXS-NEO to improve the lives of those who suffer from cancer." Volatility in the stock is nothing new to shareholders of the company. The most recent instance of sharp upside came at the beginning of March when a company study was selected for a late-breaking poster at the American Association for Cancer Research. Shares nearly doubled following the news, and ran from under $5.50 to over the $9 level. The stock traded higher by $2.28 or 26.92 percent at $10.75 in the pre-market trading on Tuesday at the time of writing this. Shares of the company resisted at around $9.50 level in June before dropping down to below $8 level in July.