Market Overview

Allergan, Exicure Strike Collaboration Agreement For Hair Loss Disorder Drugs

Share:
Allergan, Exicure Strike Collaboration Agreement For Hair Loss Disorder Drugs

Shares of the thinly traded micro-cap Exicure Inc (NASDAQ: XCUR) were advancing strongly Thursday in the wake of a collaboration agreement announced by the company with Allergan plc (NYSE: AGN).

Exicure Receives $25M Upfront 

Exicure — a biotech company developing therapies for immuno-oncology, inflammatory diseases and genetic disorders — said the collaboration agreement pertains to discovery and development of novel treatments for hair loss disorders based on its proprietary SNA technology.

The agreement provides for Allergan receiving exclusive access and options to license SNA-based therapeutics arising from two collaboration programs by making an upfront payment of $25 million to Exicure. The latter will conduct discovery and development in the two programs for hair loss disorders.

If Allergan exercises an option, it will then be responsible for clinical development and commercialization of the licensed products.

Exicure will also be eligible to receive development and regulatory milestone payments up to $97.5 million per program and commercial milestones of up to $265 million per program.

Additionally, the company will also be eligible to receive tiered royalties on worldwide net product sales in the mid-single digit to mid-teens percentage range.

Pattern Baldness Affects 80 Million Americans 

One of the most common hair loss disorders is androgenetic alopecia, commonly called pattern baldness, which affects about 50 million men and 30 million women in the U.S., Exicure said.

Over $3.5 billion is spent on treatments each year, although most treatment options are ineffective, the company said. 

"We are excited to combine our knowledge of nucleic acid therapeutics with Allergan's deep expertise in medical aesthetics to develop and commercialize innovative treatments for hair loss disorders." Exicure CEO Dr. David Giljohann said in a statement. 

Exicure shares were up 20.93% at $2.98 at the time of publication Thursday, while Allergan shares were down 0.25% at $181.16. 

Related Links:

The Daily Biotech Pulse: Amarin Braces For Vascepa Adcom Verdict, Biotechs On A Fundraising Spree, Zosano Makes Progress With Migraine Drug Filing

Analyst Trims NextCure Price Target Following SITC Presentation, Still Sees Big Upside

Posted-In: Biotech News Contracts Trading Ideas Best of Benzinga

 

Related Articles (AGN + XCUR)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Hapag-Lloyd Q3 Profits Surge On Higher Freight Rates

South African Airways Plans To Restructure, Cut Jobs; Unions May Strike