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NYSE: MYOV

Pharmaceutical companies Myovant Sciences (NYSE: MYOV) and Pfizer (NYSE: PFE) revealed that they will be collaborating on the development and commercialisation of ORGOVYX, the first oral gonadotropin-releasing hormone receptor antagonist for the treatment of adult patients with advanced prostate cancer.

The collaboration will see the companies develop and commercialize ORGOVYX and relugolix combination tablet and share profits and expenses in the U.S. and Canada, with Myovant receiving an upfront payment of $650 million in addition to potential regulatory and sales milestones for a total of up to $4.2 billion.

The companies will begin co-promoting ORGOVYX for advanced prostate cancer in early 2021, with the companies sharing profits and expenses.

Pfizer will receive an exclusive option to commercialise the tablet in oncology outside of the US and Canada, and, if the option is exercised, Myovant will receive $50 million and be entitled to receive double-digit royalties on sales.

“Pfizer is the ideal partner for Myovant given its impressive capabilities and track record across both oncology and women’s health,” commented Lynn Seely, Myovant’s CEO.

“This transformative collaboration will significantly strengthen the upcoming launch of ORGOVYX and the potential launches of relugolix combination tablet in women’s health, while substantially enhancing our financial position and enabling us to expand our pipeline of potential new medicines,” Seely added.

Myovant shares are currently trading 21.32% higher premarket at $27.60, after closing at $22.80 on Christmas eve. Shares of Pfizer have seen a limited reaction to the news, gaining 0.40%.

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