Onconova Therapeutics Inc (NASDAQ: ONTX) is having a relatively strong day in the market today, and for good reason. In a press release issued early this morning, the company announced that it has entered into a license agreement. Today, we’ll talk about the agreement, what we’re seeing from the stock, and what we’ll be watching for with regard to ONTX ahead.
ONTX Announces License Agreement
As mentioned above, Onconova Therapeutics is having a strong day in the market today after announcing that it has entered into a license agreement, In the release, the company announced that it has entered into an agreement with Pint Pharma GmbH to commercialize rigosertib. Rigosertib is a novel and targeted anti-cancer compound currently in Phase 3 studies for the treatment of MDS. MDS represents a group of rare hematologic malignancies.
Under the terms of the agreement, ONTX has granted Pint Pharma an exclusive license to commercialize the treatment in Latin America. In exchange, Pint will be making an investment that totals up to $2.5 million by purchasing shares at a premium to market value. Also, Pint will make additional regulatory, development and sales0based milestones payments to the company as well as pay double digit tiered royalties on sales in the licensed territories. ONTX will supply the finished product for sale and Pint will commercialize the treatment as well as support the company’s clinical trial initiatives in the territory. In a statement, Dr. Ramesh Kumar, President and CEO at Onconova, had the following to offer:
Following the recently announced promising interim analysis of our Phase 3 INSPIRE trial, we remain dedicated to advancing IV rigosertib towards commercialization in order to address the needs of MDS patients who fail hypomethylating agents (HMAs). Since HMAs are used globally, we are seeking regional partnerships to help prepare for the commercialization of rigosertib worldwide. We are delighted to partner with Pint Pharma, which has a wide footprint in South and Central America, and view this license agreement as further validation of the potential of rigosertib for the treatment of MDS. We also look forward to working with the clinicians and experts at Pint Pharma to advance clinical trials for IV and oral rigosertib in important centers in their territory.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, through the license agreement, Onconova has an advantage in yet another territory for the commercialization of rigosertib. So, it’s no surprise to see that the stock is making its way to the top. Currently (10:54), ONTX is trading at $1.19 per share after a gain of $0.05 per share or 3.98% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ONTX. In particular, we’re interested in following the story surrounding rigosertib and the goal of bringing the treatment to market, not only in the United States but around the world. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!