NEW YORK (TheStreet) -- Shares of Infinity Pharmaceuticals (INFI) soared 47.68% to $16.13 in morning trading Wednesday after the company partnered with Abbvie (ABBV) to develop and market Infinity's experimental blood cancer drug IPI-145, or duvelisib.
The two companies announced the partnership Wednesday morning. Abbvie will pay $275 million in cash upfront for global licensing rights to the oral drug, which Infinity designed to block the PI3K protein, a crucial component for growing tumors. Infinity can also receive up to $530 million in development and milestone payments in the future.
The two companies will share marketing duties for the drug and would split sales and profits in the U.S. if duvelisib receives approval. Infinity will receive a royalty on Abbvie's net sales of the drug in the range of 23.5% to 30.5% outside the U.S.
More than 6.6 million shares had changed hands as of 10:14 a.m., compared to the average volume of 510,102.INFI data by YCharts
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