OSE Immunotherapeutics shares posted one of the biggest rises on the Paris Bourse on Wednesday, following the announcement of a "major" extension to its collaboration with Boehringer Ingelheim.

The French biotech company and the German biopharmaceutical group explain that they intend to work together to develop "first-in-class" treatments for cancer and cardiovascular, renal and metabolic diseases.

In detail, two new projects will be added to the immuno-oncology programs already under development.

The first concerns the opening of a new therapeutic area for the active ingredient already developed in partnership, with a larger number of patients at stake, while the second concerns the acquisition of a new active ingredient.

Under the terms of the agreement, OSE will receive a signature payment of 13.5 million euros and a potential short-term milestone payment of 17.5 million euros.

For the two ongoing programs, the two partners have agreed to a partial buy-out of future royalties and a one-off payment of 25.3 million euros.

'OSE Immuno is likely to receive more than 56 million euros from Boehringer Ingelheim in the short term', analysts at Invest Securities pointed out this morning.

In addition, Boehringer Ingelheim will benefit from an additional buy-back option upon further development, which will trigger a one-off payment as well as an increase in a sales milestone payment.

All other development, regulatory and sales milestone payments up to 1.1 billion euros are maintained, as agreed between the parties in their initial agreement.

At around 9:30 am, shares in the Nantes-based biotech company were up 15%. Boosted in particular by its worldwide license agreement with U.S. giant AbbVie, the stock has gained nearly 95% since the start of the year.

Copyright (c) 2024 CercleFinance.com. All rights reserved.