Amphastar Pharmaceuticals (NASDAQ:AMPH) saw its stock rise 5.6% after securing an exclusive licensing agreement with Nanjing Anji Biotechnology for three proprietary peptide-based therapies aimed at oncology and ophthalmology markets.
Under the deal, Amphastar gains exclusive rights to develop, produce, and market the therapies in the United States and Canada. The first candidate is an endogenous peptide with a unique mechanism that may inhibit the growth and spread of several hard-to-treat cancers. The second is a peptide-docetaxel conjugate designed to enhance selectivity and lower the toxicity of existing taxane drugs. The third is an anti-VEGFR peptide formulated as an eye drop for treating wet age-related macular degeneration.
The agreement involved an initial payment of $6 million to Anji, including a $0.75 million earnest payment and a $5.25 million upfront fee. It also includes potential development milestone payments of up to $42 million and sales milestone payments of up to $225 million.
Anji will receive a 5% royalty on net sales, capped at $60 million for each therapy, with the total potential payout over the life of the agreement reaching as much as $453 million.
The licensing arrangement runs for ten years from the first commercial sale in each market, with Amphastar holding an option to extend for another decade.
This collaboration significantly broadens Amphastar’s portfolio in high-growth therapeutic areas and builds on its track record in developing and marketing peptide-based treatments.
Amphastar Pharmaceuticals stock price
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