Rigel rises after entering licensing deal with Spanish company to market ITP treatment

Rigel Pharmaceuticals Inc (NASDAQ:RIGL) climbed Wednesday after reporting that it has entered into an exclusive license and supply agreement with a Spanish company to market its treatment of chronic immune thrombocytopenia (ITP) in Europe.

Under the deal with Grifols SA (NASDAQ:GRFS) to commercialize fostamatinib disodium hexahydrate, Rigel said in a statement that it will receive a $30 million upfront cash payment, with the potential for $297.5 million in payments related to regulatory and commercial milestones.

Shares of Rigel climbed $0.07, or 3.5%, to $2.09 in Wednesday’s Nasdaq trading.

READ: Rigel Pharmaceuticals’ price target is raised to US$7 by Jefferies analyst

Included in the deal would be a $20 million milestone payment for European Medicines Agency approval of fostamatinib for the treatment of chronic ITP. Fostamatinib is commercially available in the US under the brand name Tavalisse.

“Grifols has a broad presence in Europe and an established position in the hematology commercial landscape, which supports our goal of bringing fostamatinib to patients in these countries,” said  Raul Rodriguez, president and CEO of Rigel.

He added that Rigel expects a decision from the European Medicines Agency by the end of 2019, meaning that the drug could start generating European revenue in 2020.

In patients with ITP, the immune system attacks and destroys the body’s own blood platelets, which play an active role in blood clotting and healing. Common symptoms of ITP are excessive bruising and bleeding.

Grifols advanced $0.38, or 2%, to $19.46 on the Nasdaq.

Contact Dennis Fitzgerald at [email protected]

Story by ProactiveInvestors