Vical to earn as much as $130 million from TransVax deal with Astellas

US drug developer Vical (Nasdaq: VICL) saw its share price leap 11.6% to $4.80 after it revealed that it has entered into an agreement with Japanese drug major Astellas Pharma (TKO:4503) for its TransVax therapeutic vaccine.

Under the terms of the deal, Astellas gets exclusive rights to develop and commercialize Vical’s TransVax, designed to control cytomegalovirus (CMV) reactivation in transplant recipients, for all territories outside the USA, and co-rights in the USA.

Vical will receive near-term payments of $35 million, including $25 million upon the effective date and $10 million upon finalization of the Phase III trial design. Vical potentially will receive up to $130 million in total upfront and milestone payments through commercial launch and double-digit royalties on net sales.