cChemoCentryx Inc (NASDAQ: CCXI) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that Vifor Pharma Group has increased its stake in the comapny, exciting investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The increased stake;
- what we’re seeing from CCXI stock as a result; and
- what we’ll be watching for ahead.
CCXI Gains As Vifor Pharma Increases Stake
As mentioned above, ChemoCentryx is having an incredibly strong start to the trading session this morning after the company announced that Vifor Pharma Group has increased its equity stake. In a press release issued early this morning, the company announced that Vifor has increased its equity stake in CCXI from 6.6% to 21.2% through the acquisition of an additional 7,343,492 shares. The shares were purchased from GlaxoSmithKline.
In the release, the company said that the investment follows the establishment of a partnership with Vifor Pharma that began in May of 2016. Under the terms of the current in-licensing agreement, Vifor Pharma has the exclusive rights with regard to the commercialization of avacopan and CCX140 for orphan and rare renal diseases in all markets outside of the United States.
In a statement, Stefan Schulze, President of the Executive Committee and COO at Vifor Pharma, had the following to offer:
This investment is a logical step in strengthening our partnership with ChemoCentryx and towards realizing our vision of becoming global leader in nephrology… It further demonstrates our belief in the significant potential of these products to provide important new treatments to patients with debilitating kidney diseases. As a major shareholder we believe we can support ChemoCentryx in exploring the strength of its pipeline and the technology platform.
The above statement was followed up by Thomas J. Schall, Ph.D., President and CEO at CCXI, had the following to offer:
Vifor Pharma has shown itself to be an excellent partner, committed with us at ChemoCentryx to changing the treatment landscape for people with serious kidney disease… We continue to be impressed with Vifor Pharma`s expert preparations to market avacopan and CCX140 in their territories, while we at ChemoCentryx focus on the U.S. We`re delighted with this excellent ongoing alliance.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes moves. When it comes to ChemoCentryx, the news proved to be overwhelmingly positive. After all, the increased stake further solidifies the relationship between the company and Vifor Pharma. So, it’s not surprising to see that the stock is making a run for the top as excited investors react. At the moment (10:28), CCXI is trading at $12.09 per share after a gain of $1.60 per share or 15.25% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CCXI. In particular, we’re interested in following the story surrounding the continued partnership between the company and Vifor Pharma as well as the continued development of the company’s impressive pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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