Rexahn Pharmaceuticals, Inc. (NYSEAMERICAN: RNN) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced a license and collaboration agreement, exciting investors and sending the stock screaming for the top. Today, we’ll talk about:
- The newly announced agreement;
- what we’re seeing from RNN stock as a result; and
- what we’ll be watching for ahead.
RNN Announces New Agreement
As mentioned above, Rexahn Pharmaceuticals is having a great day in the market today aftr the company announced that it has entered into a new agreement. The announcement came by way of press release in the pre-market hours.
In the release, RNN said that it entered into a collaboration and license agreement with Biosense Global. The agreement surrounds the development and commercialization of RX-3117 for pancreatic cancer and other cancers in Greater China.
According to the terms of the agreement, BioSense will receive an exclusive license to develop and commercialize the treatment in Greater China. In exchange, RNN will recieve a upfront payment and will be eligible to receive additional development, regulatory and commerciial milestones up to a total of $26 million.
Of course, the total value is contingent upon the achievement of regulatory and commercial goals related to pancreatic cancer and additional indictations. The company also said that it will receive tiered royalties in the low double digits to mid teens on annual net sales in China.
BioSense will fund all activities related to development and commercialization of RX-3117 in Greater China and will initiate a Phase 2 study to evaluate the drug in up to three additional indications previously studied by the company.
In a statement, Douglas Swirsky, President and CEO at RNN, had the following to offer:
Rexahn is focused on developing novel therapies for people with difficult-to-treat cancers. This partnership will enable us to extend the development of RX-3117 to patients in Greater China and also to evaluate RX-3117 in additional indications in collaboration with BioSense. We are excited to work with the experienced regulatory and development team at BioSense to advance the development of RX-3117 towards regulatory approval in Greater China.
The above statement was followed up by Andy Li, PhD, President and CEO at BioSense. Here’s what he had to say:
We are delighted to partner with Rexahn to develop RX-3117 for the Greater China markets. Cancer is the leading cause of death in China with over four million new diagnoses and almost three million deaths per year. Prognosis is poor for certain cancers and treatment options are limited. Despite the significant success of immunotherapy, chemotherapy will remain a critical component of treatment regimens for many cancers. With its unique tumor-targeting mechanism, we believe RX-3117 could become a safer, more efficacious yet affordable treatment option to patients and doctors. We are excited to advance the development of RX-3117 for cancers that are especially prevalent among Chinese patients.
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 the news leads to moves in the market. When it comes to Rexahn Pharmaceuticals, the news proved to be incredibly positive.
After all, this agreement will provide the company with immediate, non-dilutive funding. Moreover, it has the potential to lead to hundreds of millions of revenue in the future. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:24), RNN is trading at $8.70 per share after a gain of $3.32 per share or 61.71% 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 RNN. In particular, we’re interested in following the story surrounding the company’s collaboration with Biosense as well as its continued development of its impressive pipeline. Nonetheless, we’ll continue to keep a close eye on the story and bring the news to you as it breaks!
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