Verastem Oncology out-licenses Copiktra

US biotech firm Verastem Oncology (Nasdaq: VSTM) saw its shares rise 22.14% to $1.60 in pre-market trading today, in reaction to a new licensing deal for its cancer drug.

Late yesterday, the company revealed that it has entered into an exclusive licensing agreement with French pharma major Sanofi (Euronext: SAN) to develop and commercialize Verastem’s Copiktra  (duvelisib), an oral inhibitor of phosphoinositide 3-kinase (PI3K), and the first approved dual inhibitor of PI3K-delta and PI3K-gamma, for the treatment of all oncology indications in Russia and the Commonwealth of Independent States (CIS), Turkey, the Middle East and Africa.

Under the terms of the agreement, Verastem will receive an upfront payment of $5 million and is also eligible to receive up to an additional $42 million in development and sales milestone payments, plus double-digit percentage royalties based on future net sales of Copiktra in the licensed territories. Sanofi will receive exclusive rights to develop and commercialize Copiktra, and hold the marketing authorization and product license for the drug in the licensed territories.