Biotech company Celcuity Inc (NASDAQ:CELC) was a big winner Friday after the announcement of a key licensing deal. The Celcuity shares soared by as much as 51% yesterday after the company announced that it reached a licensing agreement with pharmaceutical behemoth Pfizer Inc.
As part of the global licensing agreement, Celcuity is going to get the exclusive rights for gedatolisib, which is made by Pfizer. In order to complete the deal, the company paid Pfizer $5 million in cash upfront as a licensing fee and in addition, another payment of $5 million was paid in the form of Celcuity common stock. Pfizer is also eligible to receive up to $330 million in milestone payments and tiered royalties on sales.
Under terms of the deal, Pfizer granted Celcuity exclusive rights to the potential breast cancer drug known as gedatolisib. The drug has shown promise in 103 patients in early-stage testing, Celcuity said in a news release.
Celcuity is going to need the gedatolisib with regards to the development of its pan-PI3K/mTOR inhibitor. The product in question is currently in Phase 1B of clinical trials. In this particular phase of the trial, patients suffering from metastatic breast cancer are being treated with the product.
At this point in time, Celcuity is evaluating gedatolisib in a combination with palbociclib, which in itself is a CDK 4/6 inhibitor. On the other hand, it is important to point out that Celcuity has also conducted a Phase 1 trial into gedatolisib and the findings from that phase of the trial were positive. It was revealed that the product was tolerated well by patients and in addition to that, there was anti-tumor activity as well.
Investors CELC are now waiting for a Phase 2 and Phase 3 study in the first half of 2022.
Shares of Celcuity Inc (NASDAQ:CELC) were up 46% for the week, 65% for the month, and 264% for the year. It now remains to be seen if the Celcuity stock will stay on this roll. Keep it on your watchlist to find out.
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