Key Takeaways
Shares of PTC Therapeutics ( PTCT ) soared 16% Monday when the pharmaceutical firm announced it struck a nearly $2 billion license and collaboration deal with Novartis ( NVS ).
PTC said the agreement gives Novartis global development, manufacturing, and commercial responsibilities for its drug PTC518 to treat Huntington's Disease following completion of a Phase 2 study currently under way.
In exchange, PTC will receive a $1.0 billion upfront payment, with the opportunity to get a total of $1.9 billion "in development, regulatory and sales milestones, a profit share in the U.S., and double-digit tiered royalties on ex-U.S. sales." It added the companies would share U.S. profits and losses, with PTC getting 40% and Novartis 60%.
PTC Chief Executive Officer (CEO) Dr. Matthew Klein explained that the company would use the proceeds to expand its splicing platform, and boost its commercial and development portfolio activities.
The transaction is expected to close in the first quarter of 2025.
Shares of PTC Therapeutics rose to their highest level since May 2023.
American depositary receipts (ADRs)
of Novartis slipped about 1%.
