Shares of Aptevo Therapeutics Inc. (APVO) - Get Report rose on Friday, Sept. 1, after the Seattle company inked a deal to sell its three marketed hyperimmune products to Saol Therapeutics for up to $74.5 million.
The stock closed at $2.11, up 58.7%.
The products changing hands are WinRho SDF for autoimmune platelet disorder and hemolytic disease of the newborn; HepaGam B for the prevention of Hepatitis B after liver transplantation and for treatment after hepatitis B exposure; and Varizig for treatment after exposure to varicella zoster virus for people with compromised immune systems.
Aptevo will continue to own Hemophilia B treatment Ixinity.
The deal, announced after the market close on Thursday, includes a $65 million upfront payment plus a potential milestone payment of up to $7.5 million. Aptevo could also receive up to $2 million related to collection of certain accounts receivable after the closing.
The transaction is expected to be completed this year.
"With a deal value of up to $74.5 million, representing approximately 2.8 times both our current market capitalization on August 30, 2017 and our 2016 annual revenue, we view this as a very attractive opportunity to monetize our non-core assets and not dilute our stockholders as we continue to invest in promising assets like our ADAPTIR platform," said Aptevo president and CEO Marvin L. White in a statement.
Aptevo's product candidates that are built on its Adaptir modular protein technology platform include MOR209/ES414, a potential treatment for prostate cancer.
In a separate news release on Thursday, Aptevo announced the end of its partnership with MorphoSys AG regarding MOR209/ES414, which is now known as APVO414.
Aptevo will regain worldwide development and commercialization rights for APVO414 and plans to continue to advance it through the completion of the first stage of an ongoing Phase 1 study.
"We're encouraged by the latest preliminary data from the ongoing Phase 1 clinical study of APVO414," said Aptevo senior vice president and chief medical officer Scott Stromatt in the announcement. "The data suggest that administration of APVO414 by continuous infusion, rather than weekly intravenous (IV) dosing, is effective at reducing the titer of anti-drug antibodies (ADA) previously observed in the initial weekly IV dosing cohorts."
Meanwhile, shares of Iovance Biotherapeutics Inc. (IOVA) - Get Report finished Friday's trading session at $6.00, up 4.4%. San Carlos, Calif.-based Iovance after the close on Thursday said the U.S. Food and Drug Administration has given fast track designation for the company's LN-144 for the treatment of advanced melanoma.
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