BioCentury
ARTICLE | Company News

ChemoCentryx, Vifor in deal for rare renal disease candidate

May 11, 2016 12:48 AM UTC

ChemoCentryx Inc. (NASDAQ:CCXI) rose $0.89 (42%) to $2.99 on Tuesday after it granted the Vifor Pharma Ltd. subsidiary of Galenica Ltd. (SIX:GALN) exclusive rights to commercialize CCX168 in Europe, Canada, Mexico, Central and South America and South Korea. ChemoCentryx expects to begin Phase III testing by year end of the small molecule complement receptor 5a (C5aR; CD88) inhibitor to treat antineutrophil cytoplasmic antibody (ANCA)-associated vasculitis.

ChemoCentryx is to receive $85 million up front, including $60 million in cash and $25 million in an equity investment through the purchase of 3.3 million shares at $7.50 per share. The share price is a 257% premium to ChemoCentryx's closing price of $2.10 on Monday, before the deal was announced. ChemoCentryx also is eligible for undisclosed milestones, plus tiered double-digit royalties. The company said the total deal value including the upfront payment is just shy of $600 million. ...