Compugen Ltd.'s stock (CGEN) saw a significant increase of 113% in premarket trading on Tuesday following the company's announcement of an exclusive rights deal with Gilead Sciences Inc. (GILD). The agreement involves the later stage development and commercialization of Anti-IL 18 binding protein antibodies, which have the potential to treat various types of tumors.
Valued at up to $848 Million
The deal between Compugen and Gilead Sciences is valued at up to $848 million. This includes an upfront payment of $60 million, a near-term milestone payment of $30 million, and additional future development, regulatory, and commercial milestone payments totaling $758 million.
Advancing Cancer Treatment
As part of the agreement, Compugen will continue to be responsible for the ongoing pre-clinical development and the future Phase 1 study of COM503. This antibody, described as a "potential first-in-class, high affinity antibody," works by blocking the interaction between IL-18 binding protein and IL-18, thereby releasing natural IL-18 in the tumor microenvironment and inhibiting cancer growth.
Positive Market Reaction
Compugen's stock surge in premarket trading reflects the market's positive response to the deal, while Gilead Sciences' stock experienced a slight decline of 0.3% in premarket trading.
Stay tuned for further updates on the progress of this collaboration between Compugen and Gilead Sciences in the field of cancer treatment.
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