Avidity Biosciences
stock was surging Tuesday after the biopharmaceutical company announced a licensing and research deal with
Bristol Myers Squibb.
Avidity stock was climbing 15% Tuesday to $7.06 and was on pace for its largest percentage increase since December 2022, according to Dow Jones Market Data. The stock has tumbled 68% this year.
As a part of the collaboration that is focused on the development and commercialization of multiple cardiovascular drugs,
Bristol Myers
will pay Avidity $60 million in cash and will also purchase about $40 million of Avidity common stock at $7.88 a share.
Avidity also will be eligible to receive a total of $2.2 billion in milestone payments. This is usually a payment given once certain achievements are reached. The company will also be eligible to receive royalties up to low double-digits of net sales.
“This collaboration with Avidity represents an important part of our continued investment in innovative therapeutic approaches that have the potential to provide transformative outcomes to patients living with serious cardiovascular conditions,” Francisco Ramírez-Valle, head of the Immunology and Cardiovascular Thematic Research Center at Bristol Myers said in the news release.
Shares of Bristol Myers were up 0.5% to $49.27. Coming into the session, the stock has fallen 32% this year.
Write to Angela Palumbo at [email protected]
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