BioInvent soars on news of deal with US pharma giant

Swedish biotech firm BioInvent International (STO: BINV) saw its shares rise 27% to 2.54 Swedish kronor, after it revealed a significant deal for a cancer immunotherapy research collaboration and license agreement to develop antibodies targeting tumor-associated myeloid cells with US pharma giant Pfizer (NYSE: PFE).

Under the terms of the deal, Pfizer will pay BioInvent around $10 million in early payments, including an upfront payment, early research funding, and a $6 million equity investment in new shares of BioInvent at a subscription price of 2.56 kronor per share, which corresponds to an about 30% premium to the average volume weighted price for the share during the 10 trading days prior to 21 December 2016.

The deal is important in that it comes just a week after BioInvent confirmed that it was halting a Phase II study with its own lead multiple myeloma candidate, BI-505, a fully human intercellular adhesion molecule 1 (ICAM-1)-targeting antibody. The decision to terminate the trial followed notification by the Food and Drug Administration that it was putting the  trial on hold due an adverse cardiopulmonary event.