Novelion Therapeutics Inc (NASDAQ: NVLN) is having a great start to the trading session this morning, and for good reason. The company announced that its subsidiary has entered into a licensing agreement, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The licensing agreement;
- what we’re seeing from NVLN stock as a result; and
- what we’ll be watching for ahead.
NVLN Announces Licensing Agreement
As mentioned above, Novelion Therapeutics is having an incredibly strong start to the trading session this morning after announcing licensing agreement news. In a press release issued early this morning, the company announced that its subsidiary, Aegerion Pharmaceuticals, has entered into an exclusive licensing agreement.
The agreement, signed with Recordati Rare Diseases, surrounds the commercialization of JUXTAPID in Japan. According to the agreement, Recordati will hold exclusive rights in Japan for to commercializae the treatment for the current approved indication.
Also, Aegerion grants Recordati an exclusive right of first negotiation for product commercialization in Japan of any potential new indications that may be developed by Aegerion.
As a result of the agreement, the NVLN subsidiary will receive an upfront payment amounting to $25 million. The company will also receive a $5 million payment upon the transfer of the Japanese marketing authorization of JUXTAPID.
Th company may also receive commercial milestone payments that add up to $80 million as well as a 22.5% royalty on net sales of the product paid on a quarterly basis.
In a statement, Ben Harshbarger, interim CEO at NVLN, had the following to offer:
The licensing agreement for JUXTAPID in Japan is a positive step forward as we work to improve our near-term liquidity, reduce our operating expenses, and focus our efforts and resources with the goal of completing a comprehensive capital restructuring and creating a sustainable, cash-generating business. We believe Japan is an important market for JUXTAPID with meaningful potential for growth. Recordati has proven commercial capabilities and we are confident in their ability to deliver JUXTAPID to HoFH patients in need.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that it’s important to follow the news closely. After all, the news moves the market. When it comes to Novelion Therapeutics, the news proved to be overwhelmingly positive. After all, the licensing agreement will drive immediate funding for the company while offering long term value for its investors. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:51), NVLN is trading at $1.42 per share after a gain of $0.46 per share or 28.01% 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 NVLN. In particular, we’re interested in following the story surrounding the company’s continued work surrounding the expansion of JUXTAPID as well as its work to expand its pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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