Profile image
By ProactiveInvestors (Reporter)
Contributor profile | More stories
Story Views

Last Hour:
Last 24 Hours:

Cerulean Pharma shares soar after news of Novartis tie-up

Wednesday, October 19, 2016 8:17
% of readers think this story is Fact. Add your two cents.

Shares in cancer drug discovery firm Cerulean Pharma Inc (NASDAQ:CERU) soared after it announced that it had teamed up with pharmaceutical giant Novartis (NYSE:NVS) in a discovery and development deal.

Novartis is buying into the promise of Cerulean’s nanoparticle drug conjugates (NDCs) and is making an upfront payment of US$5mln as well as funding the first five candidates.

Long term investor Aspire Capital has also committed to ploughing US$20mln into the struggling microcap.

Under the terms of the deal, Cerulean’s Dynamic Tumour Targeting technology will be combined with Novartis’ compounds against up to five targets.

Cerulean is to create the NDCs, with Novartis being responsible for further development and the commercialisation of the products.

“Novartis is widely recognised as one off the world leaders in drug development,” said Cerulean President Christophe Guiffre.

“This collaboration is further validation of out powerful technology platform, and we are excited that Novartis is including NDCs in its drug discovery and development efforts.”

In addition to the upfront payment, Cerulean is also eligible for cash boosts if, or when, it hits certain preclinical, clinical, regulatory and sales milestones for each target.

Cerulean has endured a difficult time since it listed on NASDAQ back in 2014.

The stock hit a high of US$10 last year, but fell below a buck this summer after its lead candidate CRLX101 failed in a combination trial to beat treatment of care in the treatment of renal cell carcinoma.

The company then pretty much slashed its workforce in half following the failure.

Shares in Cerulean climbed 53% to US$1.04, while Novartis dipped slightly to trade at US$76.

Story by ProactiveInvestors


We encourage you to Share our Reports, Analyses, Breaking News and Videos. Simply Click your Favorite Social Media Button and Share.

Report abuse


Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories



Top Global

Top Alternative



Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.