The stock price of Conatus Pharmaceuticals Inc (NASDAQ:CNAT) are moving north on the chart since last few days. Recent NASH play has finally rewarded firm’s shareholders. The biotech concern has made a transformational collaboration agreement with drug giant company Novartis AG (ADR)(NYSE:NVS) about its compound emricasan.
The biotech industry continues to stuck in listless trading. Main biotech indices are around exactly where they were trading one week earlier and the industry appears like it will remain dull as it seeks to close an unsatisfactory 2016. Individual firms, especially mid and small-caps continue to perform sharp moves on study report and collaboration deals, but the primary biotech indices were range bound.
The highlights
Conatus is all set to get an upfront payment of $50 million, which is a sort of a big agreement provided the firm commenced the day with a comparable market cap. Novartis will compensate for half of Phase II advancement of the medication and 100% of the Phase III development expenses. The firm will obtain $7 million after the exercise of the license alternative and Novartis may offer up to $15 million in the form of notes.
It is also entitled for future milestone compensations and tiered royalties on net sales of products containing emricasan. Another analyst put out a great report on the firm in early December and certainly recorded better timing on the firm.
After closing last week in green, Akebia Therapeutics Inc (NASDAQ:AKBA) has opened today in red. The recent gains can be attributed to the news that stated that the firm has finalized a collaboration and license contract in the U.S. for vadadustat with Otsuka Pharmaceutical (OTCMKTS:OTSKY). Vadadustat is currently in development for the cure of anemia linked with chronic kidney disease. Anemia linked to CKD affects nearly 2 million people in the United States. This problem results from the kidney’s failure to generate sufficient amounts of erythropoietin, a major hormone supporting the production of red blood cells.