Concert Pharmaceuticals Inc (NASDAQ: CNCE)
Concert Pharmaceuticals is having an overwhelmingly strong time in pre-market trading today, and for good reason. Early this morning, the company announced an asset sale. Of course, this led to investor excitement, causing the stock to climb dramatically. Below, we’ll talk about what we’re seeing from CNCE, why, and what we’ll be watching for ahead.
What We’re Seeing From CNCE
As mentioned above, Concert Pharmaceuticals is having an incredibly strong time in the market in the pre-market hours today. Following news of an asset sale, investor excitement grabbed the stock and aimed it in a slingshot toward the top. At the moment (9:23), CNCE is trading at $12.90 per share after a gain of $3.25 per share or 33.68% thus far today.
Why The Stock Is Climbing
As is almost always the case, our partners at Trade Ideas were the first to inform us of the gains on CNCE. As soon as the CNA Finance team got the alert, we started to dig to see why the stock was making a run for the top. It didn’t take long to dig up the story. Ultimately, the gains are the result of excitement surrounding news of a key asset sale.
Early this morning, Concert Pharmaceuticals announced that it has entered into a definitive asset purchase agreement with Vertex Pharmaceuticals Inc (VRTX). Under this agreement, VRTX will be acquiring CTP-656 from CNCE. Up front, $160 million in cash will be handed over for all worldwide development and commercialization rights to the treatment. Also, an additional $90 million is up for grabs in milestones based on regulatory approval in the US and reimbursement in the UK, Germany or France. In a statement, Roger Tung, Ph.D., President and CEO at Concert Pharmaceuticals had the following to offer…
“With Vertex’s clinical and commercial expertise in CF, this agreement provides the optimal pathway to rapidly advance the development of CTP-656 for the benefit of cystic fibrosis patients… The financial strength provided to Concert by this agreement will allow us to advance CTP-543 into pivotal testing and broaden our proprietary development pipeline.”
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CNCE. In particular, we’re watching the continued development of CTP-656 on the VRTX side as this will likely lead to more revenue in the future via milestones. We’re also excited to watch continued work on CTP-543 as the treatment comes together. Nonetheless, we’ll be watching the news closely and bringing it to you as it breaks!
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