Thinly traded micro cap Xenon Pharmaceuticals (NASDAQ:XENE) is up 23% premarket on light volume in response to its license and collaboration deal with Neurocrine Biosciences (NASDAQ:NBIX) to develop treatments for epilepsy.
Under the terms of the agreement, NBIX will have an exclusive license to XEN901 and certain preclinical candidates. The partnership also includes a multiyear research collaboration aimed at discovering and developing additional assets.
XENE will receive $30M upfront, a $20M equity investment from NBIX based on a share price of $14.196, a $25M milestone payment triggered by the FDA acceptance of the XEN901 IND (expected to be filed in mid-2020), up to $1.7B in additional milestones, low double-digit-to-mid-teen royalties on U.S. sales of XEN901 and slightly lower royalties on ex-U.S. sales of XEN901.
XENE will be eligible to receive tiered mid-single-digit-to-low double-digit royalties on U.S. sales of other products (slightly lower rates ex-U.S.).
The company will host a conference call this morning at 8:30 am ET to discuss the collaboration.
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