Akebia Therapeutics Inc (NASDAQ: AKBA) is having an incredibly strong start to the day in the pre-market hours this morning, and for good reason. A key pact the company is part of is being expanded, and this means that more money is coming into the company. Of course, this led to investor excitement, causing the stock to head upward and prompting our partners at Trade Ideas to alert us to the movement. At the moment (8:30), AKBA is trading at $12.00 per share after a gain of $2.63 per share or 28.07% thus far today.
AKBA Gains On Extended Patent
As mentioned above, Akebia Therapeutics is having an incredibly strong start to the trading session today after it was announced that a key pact has been expanded. The pact is with Otsuka Pharmaceuticals surrounding vadadustat. According to the press release, AKBA has agreed to give Otsuka the rights to their anemia pill in exchange for $73 million upfront and up to $792 million in development funding and milestone payments. In a statement, John Butler, CEO at AKBA, had the following to offer…
“We now have a signle, strong collaborator for the two largest markets, the U.S. and Europe. This simplifies governance and decision making, maximizing the efficiency of our global phase 3 development program and ultimately the commercialization of vadadustat.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on AKBA. In particular, we’re watching the ongoing development of vadadustat and how this expanded pact will equate to revenue for the company. Nonetheless, we’ll continue to follow the story closely and bring you the news as it breaks!
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