Pharmacyclics Inks Agreement With Novo Nordisk for Molecule Inhibitor
10/09/2012| 06:25pm US/Eastern
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By Kristin Jones
Pharmacyclics Inc. (>> Pharmacyclics, Inc.) has inked an agreement with Novo Nordisk A/S (NVO, NOVO-B.KO) giving the Danish insulin producer rights to certain uses of its Factor VIIa molecule inhibitor, according to a regulatory filing.
Pharmacyclics shares rose 3.75% to $67.20 in after-hours trading. Through the close, the stock had more than doubled in the past six months.
Under the terms of the agreement, Novo Nordisk will acquire the world-wide rights to PCI-27483 for specific noncancer-related uses. The Danish company plans to use it as an excipient in an unnamed product within its biopharmaceutical unit.
An excipient is generally an inactive ingredient used to carry or to add a certain consistency to a drug.
Pharmacyclics has been developing PCI-27483 to inhibit the intracellular signaling involved in tumor growth and to thwart the blood clots that afflict some cancer patients.
The biopharmaceutical company expects to receive an upfront payment of $5 million, as well as up to $55 million based on the achievement of certain development, regulatory and sales milestones. It also will receive royalties on sales of Novo Nordisk products that use PCI-27483.
Novo Nordisk's American depositary shares closed Tuesday at $161.38 and were unchanged after hours. The ADS are up 40% so far this year.
Write to Kristin Jones at kristin.jones@dowjones.com
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