Celgene and Prothena forge multi-billion-dollar partnership

The share price of Irish biotech firm Prothena (Nasdaq: PRTA) has spiked over 10% on news that the company has finalized a major partnership with industry giant Celgene (Nasdaq: CELG).

The deal, which is worth up to $2 billion to the Dublin-headquartered company, is focused on three proteins: tau, TDP-43 and another, undisclosed target, each of which is implicated in the pathogenesis of neurodegenerative diseases such as Alzheimer's.

Prothena will receive $150 million upfront, and US Securities and Exchange Commission (SEC) documents indicate that they will eligible for up to a further $562 million per program. Of the initial $150 million, $50 million will include a mass purchase of Prothena shares – 1.2 million in total at $42.57 per share.