Dallas, Texas 12/16/2014 (FINANCIALSTRENDS) – Opko Health Inc. (NYSE:OPK) entered into an agreement for the development and commercialization of its long-acting human growth hormone with Pfizer Inc. (NYSE:PFE). OPKO’s long-acting hGH-CTP is intended for treating growth hormone deficiency in adults and children and it is also indicated for growth failure in children born small for gestational age.
As a result, Opko’s shares surged as high as $9.41 in the early trade and ended the session with 8.3% gains at $8.86. More than 10.35 million shares changed hands compared to average volume of 1.94 million shares.
OPKO’s long-acting hGH-CTP is currently in phase III clinical trial in adults and phase II trial in children. The candidate enjoys orphan drug designation in the U.S. and Europe for both children and adults with growth hormone deficiency.
Terms of the Agreement
Opko Health Inc. (NYSE:OPK) will receive an upfront payment of $295 million and an additional milestone payments of up to $275 million. In exchange, Pfizer will receive the exclusive license for global sales of hGH-CTP.
OPKO will continue to advance clinical activities and development programs for the key indications and Pfizer will oversee all the development costs for additional indications and post-marketing studies. Additionally, Pfizer will also look after the commercialization activities for all indications and manufacturing programs covered under this agreement.
Phillip Frost, CEO of Opko Health Inc. (NYSE:OPK), said that the collaboration will advance the company’s commitments to patients with GHD by leveraging Pfizer’s strengths and expertise in this space. The global growth hormone market is currently estimated at more than $3 billion and OPKO’s hGH-CTP has the potential to be a leading product in this category.
Geno Germano, Group President for Pfizer Global Innovative Pharma, commented that the collaboration strengthens the company’s commitment to rare diseases. Long-acting hGH-CTP the first innovations in about two decades in the GHD space and would be complementary to Pfizer’s existing Genotropin franchise.