uniQure (QURE) and Bristol-Myers Squibb to Collaborate on Gene Therapy for Cardiovascular Disease
Shares of uniQure N.V. (QURE) were trading up +9.75 or +42.65 percent to $32.61 per share in Monday's premarket after news that the company had entered into an agreement with Bristol-Myers Squibb (BMY) giving the company exclusive access to uniQure's gene therapy platform to treat cardiovascular diseases. uniQure stock closed at $22.86 per share, down -0.675 or -2.87 percent in Thursday's regular trading session.
The agreement with Bristol-Myers Squibb will have Bristol make near term payments of about $100 million, which includes an upfront payment of $50 million at the close of the transaction and a $15 million payment for a selection of three collaboration targets. In addition, an S100A1 (calcium binding protein) will be made within three months after the close of the transaction and an initial equity investment in uniQure which will equal 4.9 percent of total shares outstanding after the issuance at a price of $33.84 per share, or a minimum of $32 million.
Bristol will acquire an additional 5.0 percent ownership before December 31st, 2015 and granted two warrants to acquire an additional 10 percent equity interest at a premium to be based on additional targets introduced into the collaboration. The companies also agreed to a supply contract, which will have uniQure undertake the manufacture of all gene therapy products in the collaboration.
uniQure will receive development and regulatory milestone payments and as much as $254 million for the lead S100A1 therapy and up to $217 million for each additional gene therapy product potentially developed under the collaboration. In addition, uniQure will also be eligible for net sales milestone payments which will be tiered to royalties on the sale of the products.
Professor Dr. Patrick Most, Managing Director of uniQure Germany, which was formerly known as InoCard, stated in the company's press release that, "It is immensely exciting to see the potential of our initial discoveries recognized first by uniQure and then advanced to a stage where we can build a portfolio of gene therapies to treat cardiovascular disease in partnership with Bristol-Myers Squibb, I would like to thank my colleagues in Heidelberg, Amsterdam and Lexington, Massachusetts for the teamwork that has contributed to bringing the lead S100A1 therapeutic closer to helping patients.
uniQure stock is reacting favorably to the news, gaining significantly in this morning's premarket. In addition to the news of the collaboration with Bristol-Myers Squibb, the company also announced better than expected fourth quarter and full year 2014 results.
Other News About QURE
uniQure Reports Q4 Earnings from Licensing, Collaboration Sales 1.5M, FY14 Loss of 2.16/Share
uniQure reported an increase of +62.1 percent in revenues and an operating loss of - 33.8 million for the full year.
uniQure Announces Webcast to Discuss Bristol-Myers Squibb Collaboration
Company will hold a conference call today at 8:30 EDT.
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