ProMetic Life Sciences Inc. (TSX:PLI) saw its stock value increase 25 per cent in heavy trading Tuesday, a day after the Montreal-based concern announced a strategic drug development agreement with Allist Pharmaceuticals of China.
ProMetic shares rose three cents to 15 cents apiece on the Toronto Stock Exchange on volume of more than 6.6 million shares, making it the fifth most active issue on the main board.
The company announced late Monday that Allist had agreed to fund and accelerate development programs for two ProMetic drug candidates.
One, PBI-1402, is for chemotherapy-induced anemia and cancer related anemia indications. The other, PBI-4419, is being developed for fibrotic disease indications.
"Allist will fund the development costs required for the regulatory approval in China for the two products," ProMetic said in a news release.
"As part of the conditions for the rights granted, Allist undertakes to perform development activities according to standards meeting FDA requirements, which will then allow ProMetic to have full access to and use the data generated by Allist for markets outside China."
The agreement includes US$59 million in milestone payments to ProMetic as well as royalties on sales in China. Allist secures exclusive commercial rights for the Chinese market, while ProMetic retains rights to data for other markets, representing savings of over US$10 million in future development costs, the company said.
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