Biotech News: Why Curis Stock Is Soaring Today
A recent bit of biotech news involving Curis has CRIS stock flying high on Monday.
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Curis (NASDAQ:CRIS) has announced that it has reached a deal with Oberland Capital Management in connection to Erivedge. This has it offering selling rights for a portion of royalty revenues to the group for $135.70 million.
According to Curis, the deal with Oberland Capital Management has it receiving a starting payment of $65.00 million. It is then able to collect additional payments of up to $70.70 million from the company. However, Erivedge must reach certain milestones for CRIS to receive these payments.
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The biotech news also includes Curis already making good use of the money from the deal. It notes that it used a portion of the cash from the deal to pay off some of its debts. It is also using the remaining $30 million from the upfront payment to funds its operations.
“We believe this structure provides Curis with substantial non-dilutive capital today, while retaining significant participation in the future upside potential of Erivedge,” James Dentzer, President and CEO of Curis, said in a statement. “The proceeds of this transaction further strengthen our cash position as we fund our three lead therapeutic candidates to reach their near term development catalysts and beyond.”
Erivedge is a drug from Curis that is used to treat patients suffering from Hedgehog signaling due to genetic mutations. The drug does this by targeting a protein called Smoothened.
CRIS stock was up 31% as of Monday morning and is up 74% since the start of the year.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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