Can Fite Biopharma Ltd (ADR) (NYSEAMERICAN: CANF) is having an incredible day in the market today, and for good reason, the company announced a payment of about $2.2 million that was received. This proved to be exciting news among investors, leading to strong gains in the value of the stock. Today, we’ll talk about the payment, what we’re seeing from CANF, and what we’ll be watching for ahead.
CANF Gains On Payment Receipt
As mentioned above, Can Fite Biopharma is having an incredibly strong day in the market today after announcing the receipt of a large payment. In a press release issued this morning, the company announced that it has received its first payment of about $2.2 million from Gebro Holdings GmbH.
This payment is part of a recently announced distribution agreement with Gebro. The agreement gives Gebro the exclusive right to distribute Can Fite’s lead drug candidate, known as Piclidenoson in three European countries. The drug was designed for the treatment of rheumatoid arthritis and psoriasis. The recently signed distribution agreement adds to other agreements surrounding Piclidenoson that the company already has in place with Cipher Pharmaceuticals and Kwang Dong Pharmaceuticals.
The agreement stipulates that CANF will receive this payment of $2.2 million. Also, a payment of approximately $7 million will be received by the company upon the achievement of certain regulatory, launch and sales milestones. This is in addition to double digit royalty payments on net sales. In a statement, Dr. Pnina Fishman, CEO at CANF, had the following to offer:
We are pleased to receive this upfront and milestone payment of $2,200,000 from Gebro and look towards future potential milestone payments as we advance Piclidenoson through completion of our current Phase III trials in rheumatoid arthritis and psoriasis.
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