Sector Update: Healthcare Shares Flat to Higher; Immunogen up 6% on Licensing to Novartis
Healthcare shares are mixed in pre-market trade. Immunogen ( IMGN ) is up 6% after it said it has licensed its antibody-drug conjugate technology to Novartis ( NVS ) to develop anticancer therapeutics to an undisclosed target. NVS is flat at $73.96.
It is the second license to be taken by Novartis under a 2010 agreement between the companies. For each license, Immunogen receives an upfront payment and is entitled to receive milestone payments potentially totaling approximately $200 million plus royalties on sales of any resulting products.
And, Vivus Inc. ( VVUS ) is up 8% after it said it will receive an initial fee of $30 million and potential milestone payments of up to $300 million from granting the U.S. and Canada licensing rights to its STENDRA drug to treat erectile dysfunction to Auxilium Pharmaceuticals. Included in the $300 million is the upfront licensing fee of $30 mln and a $15 mln payment contingent upon a potential label amendment regarding onset-of-action, in addition to royalties on product sales.
Finally, Aastrom Biosciences, Inc. ( ASTM ), a developer of patient-specific expanded multicellular therapies for the treatment of severe chronic cardiovascular diseases, approved a one-for-20 reverse stock split of the company's common stock effective on October 16, 2013. ASTM is down 17% at $0.195.