Why Lineage Cell Therapeutics Stock Popped Today
Shares of clinical-stage biotech Lineage Cell Therapeutics (NYSEMKT: LCTX) rose sharply on Tuesday after the company announced a worldwide license agreement with privately held biotech Immunomic Therapeutics. Lineage Cell Therapeutics' stock rose as much as 10.6% but closed the day by 4.6%.
Per the terms of the deal, Lineage Cell Therapeutics and Immunomic Therapeutics will collaborate to develop a potential cancer therapy derived from Lineage's VAC allogeneic cancer immunotherapy platform. While the two entities will initially work together on this project, Immunomic Therapeutics will, at some point, assume full responsibility for the clinical development and commercialization of the candidate.
Lineage Cell Therapeutics will receive an upfront payment of $2 million in the first year, with additional development and commercial milestone payments reaching up to $67 million. Lineage Cell Therapeutics will also be eligible to receive royalties of up to 10% of the sales of this product.
Source Fool.com
