Spruce Biosciences Inc (NASDAQ: SPRB) stock price soared 165.6% after entering a strategic partnership and exclusive licensing agreement with Kaken Pharmaceuticals to develop and commercialise tildacerfont. The drug treats congenital adrenal hyperplasia (CAH).
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Spruce Bio will receive an upfront payment of $15 million plus development and commercial milestone payments in addition to tiered double-digit royalties on sales made in Japan. Investors cheered the lucrative deal, as evidenced by the stock’s rally.
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Kaken Pharma will have the sole rights to develop and commercialise tildacerfont in Japan. At the same time, Spruce Biosciences will retain rights to the drug in all other global geographies and countries.
Javier Szwarcberg, M.D., M.P.H., the Spruce Biosciences CEO, said: “We are excited to enter into this strategic partnership with Kaken Pharmaceutical designed to accelerate our global development plans and bring tildacerfont to patients in Japan who suffer from CAH,”
Adding:
“As a speciality pharmaceutical company with a strong presence in Japan, Kaken is the ideal strategic partner for the territory, and supports Spruce’s partnering strategy to develop tildacerfont in markets outside of the United States. We believe Kaken’s track record of development and commercialization in the Asia-Pacific region will be instrumental in delivering the full therapeutic potential of tildacerfont and bringing a new treatment option to CAH patients in Japan if approved.”
Hiroyuki Horiuchi, Kaken Pharma’s President and Representative Director, said: “We are pleased to begin a collaboration with Spruce, a company committed to transforming the lives of patients with CAH. Through this collaboration, we hope we can contribute to CAH patients and their families, who currently have limited available treatment options in Japan.”
Tildacerfont is a potent, highly selective, non-steroidal, oral antagonist of the corticotropin-releasing factor (CRF) 1 receptor. The drug has been tested in 235 patients in eight clinical trials and has been well tolerated.
The drug has no serious adverse effects and is currently in clinical trials to determine if it can be an effective treatment for pediatric classic CAH, adult classic CAH and polycystic ovary syndrome.
Over 16.25 million SPRB shares had changed hands at the time of writing.
*This is not investment advice.
Spruce Biosciences (SPRB) stock price.
The Spruce Biosciences (SPRB) stock price soared 165.6% to trade at $3.32, from Thursday’s closing price of $1.25.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.