Myovant Sciences Ltd MYOV stock is adding about one-fourth of its market capitalization Monday following a licensing deal with Pfizer Inc. PFE.
What Happened: Myovant announced a collaboration with Pfizer to develop and commercialize relugolix for oncology indications and women's health in the U.S. and Canada.
Pfizer will receive an exclusive option to commercialize relugolix in oncology outside the U.S. and Canada, excluding certain Asian countries.
Relugolix is a once-daily, oral gonadotropin-releasing hormone receptor antagonist that was approved by the FDA on Dec. 18 to treat adult patients with advanced prostate cancer.
Relugolix combination therapy is being evaluated in two late-stage clinical programs as treatment options for heavy menstrual bleeding associated with uterine fibroids and for endometriosis-related pain.
For uterine fibroid, the FDA has set a PDUFA goal date of June 1, 2021, while for endometriosis, Myovant plans an NDA filing in the first half of 2021.
"Pfizer is the ideal partner for Myovant given its impressive capabilities and track record across both oncology and women's health," Myovant CEO Lynn Seely said in a statement.
"This transformative collaboration will significantly strengthen the upcoming launch of ORGOVYX and the potential launches of relugolix combination tablet in women's health, while substantially enhancing our financial position and enabling us to expand our pipeline of potential new medicines."
The Myovant, Pfizer Deal Terms: Myovant and Pfizer will commercialize relugolix under the brand name Orgovyx in advanced prostate cancer beginning in early 2021.
If it's approved for women's health indications, relugolix combination therapy will also be marketed jointly by the companies in the U.S. and Canada.
Myovant will be responsible for regulatory interactions, drug supply and the clinical development of relugolix combo therapy.
The agreement provides for Myovant receiving up to $4.2 billion, Including an upfront payment of $650 million, $200 million in potential regulatory milestones for FDA approvals for relugolix combination tablet in women's health and tiered sales milestones upon reaching certain thresholds up to $2.5 billion in net sales for prostate cancer and also for the combined women's health indications.
If Pfizer exercises the option to commercialize relugolix outside of U.S. and Canada, Myovant stands to receive $50 million and also double-digit royalties on sales.
MYOV Price Action: At last check, Myovant shares were soaring 22.81% to $27.94.
Related Link: 5 Biotech Stocks That Generated 1,000%+ Returns In 2020
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.