Oasmia acquires novel cancer project from Karo Pharma

Oasmia Pharmaceutical (OSM: STO) has entered an agreement with fellow Sweden-based Karo Pharma (KARO: STO) relating to the latter’s promising pre-clinical cancer project KB9520.

Under the terms of the deal, Karo Pharma receives 3,080,000 newly-issued shares as a down payment corresponding to a value of 25 million Swedish kronor ($2.8 million). Additionally, Oasmia will pay Karo Pharma 20% of all future revenues generated by the project for Oasmia. Oasmia will continue the development process and will be responsible for all project expenses.

Following the announcement, Karo Pharma’s shares dropped 5.35% to 35.40 kronor by mid-morning trading today, while Oasmia shot up 14.62% to 9.90 kronor.