Ardelyx rises as it expands Kyowa Kirin partnership

California, USA-based cardiorenal specialist Ardelyx (Nasdaq: ARDX) and Japan’s Kyowa Kirin (TYO: 4151) yesterday announced the expansion of their partnership with two new agreements. News of the deal pushed Ardelyx’ shares up 9% in after-hours trading Monday and 5.8% to $6.75 pre-market today, while Kyowa Kirin edged 0.8% higher to 2,3919 yen.

In the first agreement, the companies have established a two-year research collaboration, whereby Ardelyx will execute a research plan, in which Kyowa Kirin will also join, to advance two of Ardelyx' ongoing research programs focused on the identification and design of compounds to two undisclosed targets.

In return, Kyowa Kirin will pay Ardelyx $10 million ($5 million a year for two years) to support the ongoing research. Following the end of the research period, Kyowa Kirin will have the option to license any candidates nominated by the companies for further development and commercialization in certain specified territories, with additional commitments payable to Ardelyx of up to $10.5 million in upfronts and up to $500 million in development and sales milestones. The research collaboration will be governed by a joint research committee. Additional terms were not disclosed.