vTv Therapeutics Inc (NASDAQ: VTVT) is having an overwhelmingly strong start to the trading session this morning after announcing that it has entered into an exclusive licensing agreement. Of course, the agreement led to excitement among investors who are sending the stock screaming for the top. Today, we’ll talk about:
- The agreement;
- what we’re seeing from VTVT;
- and what we’ll be watching for ahead.
VTVT Announces Licensing Agreement
As mentioned above, vTv Therapeutics is having an incredibly strong day in the market today after announcing a licensing agreement. In a press release issued early this morning, the company announced that it has entered into an exclusive licensing agreement with Newsoara BioPharma Co., Ltd. The agreement surrounds the rights to develop and commercialize the PDE4 Inhibitor program by VTVT in mainland China, Hong Kong, Macau, Taiwan and other Pacific Rim countries.
According to the terms of the agreement, VTVT will receive an upfront payment of an undisclosed amount. The company will also be eligible to receive future development and commercial milestone payments as well as royalties on sales of approved products. In particular, Newsoara will develop HPP737 in the covered territories for respiratory and other inflammatory diseases.
In a statement, Steve Holcombe, CEO at VTVT, had the following to offer:
We are excited to partner with Newsoara, an innovative biotechnology company in China with an outstanding experienced management team, led by Dr. Benny Li, to develop and commercialize our PDE4 program in the licensed Asian countries… This represents our second partnership to introduce potential new therapies into the China market which speaks to the importance of that market.
The above statement was followed up by Dr. Li, CEO at Newsoara. Here’s what he had to offer:
With this partnership, we hope to develop a new treatment for inflammatory diseases, including COPD, which is one of the major health care burdens in China, with over eight percent of the country’s adult population suffering from the disease and limited safe and effective treatment options available.
What We’re Seeing From The Stock
One of the first lessons that we learn as investors is that the news moves the market. In the case of vTv Therapeutics, the news proved to be overwhelmingly positive. With the new licensing agreement, the company will not only receive immediate funding, but has the potential to receive future milestone and royalty payments. As a result, it’s no surprise to see that excited investors are sending the stock screaming for the top. Currently (10:41), VTVT is trading at $2.22 per share after a gain of $0.56 per share or 33.33% 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 VTVT. In particular, we’re interested in following the continued development surrounding the PDE4 program as well as the success of this agreement. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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