Shares of Merrimack Pharmaceuticals Inc. jumped Tuesday before markets opened and after the cancer drug developer said it could receive up to $15.5 million through a collaboration with Actavis Plc.
Merrimack will receive $2 million upfront and the rest of the money in funding and development and regulatory and commercial milestone payments. The Cambridge, Mass., company also said it will receive a double-digit share of profits on future global sales of any products derived from the collaboration.
Under the deal, Merrimack will develop and make products for Dublin-based Actavis to sell globally.
Merrimack has no products on the market, but it has several potential cancer treatments in its drug development pipeline. That includes a pancreatic cancer drug in late-stage testing.
It also is working with French drugmaker Sanofi on a potential treatment for forms of breast, lung and advanced ovarian cancers.
Merrimack shares climbed more than 11 percent, or 36 cents, to $3.53, on Tuesday in premarket trading. The stock had fallen 48 percent so far this year, as of Monday.