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Biotech News: Proteostasis Therapeutics (PTI) Stock Soars on Genentech

Proteostasis Therapeutics (NASDAQ:PTI) experienced an increase to its market value early on Monday as the company has reportedly inked a deal with biotechnology company Genentech in order to provide a license for a cystic fibrosis treatment.

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The Boston, Mass.-based company said that it has reached an exclusive license agreement to offer the rights for a Genentech product–the company is part of the Roche Group. The product in question are therapeutic small molecule modulators designed to treat some form of cystic fibrosis with an undisclosed target to be integrated from the Proteostasis network.

The deal does not include the cystic fibrosis transmembrane conductance regulator (CFTR) modulators and it has no connection to PTI’s investigational medicines or any of its other ongoing research programs linked to the ailment. The deal will garner Proteostasis upfront payments, as well as milestone ones, that may reach over $100 million.

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The company is also in a position to reel in royalties on sales of medicines associated with the license agreement.

“We are thrilled to enter into this agreement with Genentech, an industry leader with a proven record of success in small molecule research and development,” said Meenu Chhabra, who is the President and CEO of Proteostasis Therapeutics. “PTI’s platform revolves around the modulation of protein homeostasis pathways within the cell, either restoring its normal state or enhancing its capacity to control or delay the progression of disease.”

PTI stock is gaining about 2.7% on Monday following the news.

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