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Evgen Pharma Shares Surge On Licensing Deal Worth Up To $160.5m

Sam Boughedda
Sam Boughedda trader
Updated 10 Oct 2022

Buy Evgen Pharma Shares Your Capital Is At Risk

Key points:

  • Evgen Pharma secured a licensing deal for up to $160.5 million
  • The company has secured the licensing deal with Swiss company Stalicla
  • Evgen Pharma shares surged more than 60% on the news
  • key point

Evgen Pharma (LON: EVG), a drug development company, has licensed the global rights in its lead asset SFX-01 in neurodevelopmental disorders and schizophrenia to Swiss group Stalicla, which specialises in the identification of specific phenotypes of autism spectrum disorder.

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The partnership of Evgen and Stalicla will enable the targeting of patient groups most likely to benefit from SFX-01, not only de-risking the clinical development but potentially bringing a therapeutic option.

Evgen Pharma price chart
Evgen Pharma Daily Chart – Source: IG

Also Read: Five Best Pharmaceutical Stocks To Watch In 2022

Stalicla will pay $0.5 million upfront and $0.5 million on the completion of the Evgen-sponsored human volunteer Phase 1 study. Furthermore, milestone payments up to commercial launch are $26.5 million. In all scenarios, royalties paid to Evgen on sales will be in the low to the medium double-digit range. In total, the group licensed the asset for approximately $160.5 million if all milestones are met.

“This is an exciting opportunity to work with Stalicla to develop a potential treatment for ASD and other neuropsychiatric disorders,” said Dr. Huw Jones, Evgen CEO.

Jones continued, “There are no current approved treatments for ASD but a molecular target activated by SFX-01 offers considerable promise in alleviating some of the complex behavioural challenges experienced by people with these conditions.”

AIM-listed Evgen shares are up 58% at 4.51p at the time of writing, following the announcement on Monday. The company’s shares hit a high of 4.98p earlier in the session, a high last seen in January this year.

Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.