CytomX stock rockets 35% after deal with Amgen
CytomX Therapeutics Inc. (CTMX) roared 35% higher in after-hours trading Tuesday to prices that would be record highs after announcing a partnership (http://ir.cytomx.com/phoenix.zhtml?c=254195&p=irol-newsArticle&ID=2304423) with biotech giant Amgen Inc. (AMGN) The companies will collaborate on an immuno-oncology product focusing on t-cell therapeutics developed by CytomX, with CytomX leading early development and Amgen taking over for later development and commercialization. Amgen is paying CytomX $40 million and buying $20 million in CytomX stock, and CytomX has the opportunity to earn up to $455 million based on milestones and share in profits from the U.S. while receiving royalties on non-U.S. sales of the drug. Amgen also receives the right to develop and commercialize three undisclosed CytomX candidates, with CytomX eligible to receive $950 million based on the performance of those therapies as well as royalties. CytomX stock topped $25 in late trading, a level it has never cracked in regular trading, after closing at $19. Amgen shares were stable in after-hours action.
-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com
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