Pfizer licenses MultiStem IBD drug from Athersys for as much as $111 million; sells Vicuron subsid

US stem-cell specialist Athersys' shares rocketed almost 200% to $2.96 after it revealed yesterday that it has entered into an agreement with global drug behemoth Pfizer to develop and commercialize its MultiStem for the treatment of inflammatory bowel disease (IBD).Pfizer's stock rose 3% to $18.77 on the news.

Under the terms of the deal, Athersys will receive cash up-front of $6 million from Pfizer, as well as research funding and support during the initial phase of the collaboration. In addition, it is also eligible to receive payments of up to $105 million upon the successful achievement of certain development, regulatory and commercial milestones. Pfizer will have responsibility for development, regulatory and commercialization and will pay Athersys tiered royalties on worldwide commercial sales of MultiStem IBD products.

Alternatively, in lieu of royalties and certain commercialization milestones, Athersys may elect to co-develop with Pfizer and the parties will share development and commercialization expenses and profits/losses on an agreed basis beginning at phase III clinical development.