Neurometrix Inc (NASDAQ: NURO) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has achieved a key development milestone, which will lead to a payment of nearly $4 million. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The milestone;
- what we’re seeing from NURO;
- and what we’ll be watching for ahead.
NUR Announces Milestone Achievement
As mentioned above, Neurometrix is having an incredibly strong start to the trading session this morning after announcing milestone news. In a press release issued early this morning, the company announced that it has achieved the first development milestone under its strategic collaboration with GSK Consumer Healthcare. As a result, the company has received a milestone payment in the amount of $3.8 million.
The collaboration leading to this milestone payment was entered into with GSK back in January. In an agreement, the company acquired exclusive ownership of the Quell® technology for markets outside the United States. In exchange for the ownership of the technology, GSK made an upfront payment of $5 million to NURO. The company also agreed to pay up to $21.5 million upon the achievement of certain development and commercial milestones. Also, GSK has agreed to assist NURO in funding Quell technology development for an initial two-year period that starts in 2019. Extensions will take place as long as both parties agree.
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. In the case of NURO. The news proved to be overwhelmingly positive. In this particular case, the injection of $3.8 million into the company is exciting investors. So, it’s no surprise that these investors are sending the stock screaming for the top. Of course, our partners were the first to alert us to the gains. Currently (8:19), NURO is trading at $1.73 per share after a gain of $0.49 per share or 39.40% 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 NURO. In particular, we’re interested in following the story surrounding Quell and the company’s joint efforts with GSK to further develop the technology. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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