(Intercept Pharma) Shares of Intercept Pharmaceuticals rose 33% on Thursday after inking a deal with Advanz Pharma to commercialize its drug Ocaliva® for PBC outside of the US.
Under the deal, Advanz Pharma will also work with Intercept to facilitate a smooth transition of the latter’s ex-US business.
Jerry Durso, Intercept CEO, said the deal brings value to the company, helping it strengthen the balance sheet and offering more strategic optionality.
Intercept will get an upfront consideration of $405 million. The company will earn additional $45 million from Advanz Pharma, contingent upon receiving an extension of pediatric orphan exclusivity in Europe.
Intercept will further get royalties for future net sales of obeticholic acid in NASH outside the US if Advanz Pharma pursues market authorization.
The deal also allows Intercept to be responsible for the manufacturing and delivery of obeticholic acid across the globe as Advanz Pharma takes over the non-US-related packaging, distribution, and sales.
ICPT: NASDAQ is up +33.08% on premarket.
