Massachusetts based Surface Oncology (NASDAQ: SURF) said on Thursday that it has agreed on a deal with GlaxoSmithKline (NYSE: GSK) to exclusively license worldwide development and commercial rights to Surface Oncology’s preclinical program, SRF813.
SRF813 is a fully human IgG1 antibody targeting PVRIG, an inhibitory protein expressed on natural killer cells and T cells.
The agreement will see Surface receive an $85 million upfront payment from GSK with the company potentially receiving up to $730 million in future milestone payments, as well as being eligible for tiered royalties on global sales.
“The economics of the transaction position us well to continue to drive the development of our wholly-owned clinical programs, SRF617 and SRF388, while also advancing SRF114, our CCR8 targeted program,” said Jeff Goater, CEO at Surface Oncology.
Surface said that following the deal, it projects it will have sufficient cash to fund its operations through to 2023.
Surface Oncology’s stock price surged after the announcement and is currently trading at $11.81, up 18.57% premarket.