Shares of South Korean pharmaceutical company Yuhan Corp. strengthened Thursday after it landed a licensing deal worth $410.5 million for its novel drug for functional gastrointestinal treatment from U.S. pharma firm Processa Pharmaceuticals.
Yuhan said Processa Pharmaceuticals will pay up to $410.5 million for an exclusive license to develop the drug YH12852.
Under the term, Yuhan will receive a non-refundable down payment of $2 million in the form of Processa shares. It is also eligible to receive additional payments in development and commercial milestones, plus tiered royalties after the drug makes it to market.
Processa will hold an exclusive right to develop, manufacture and commercialize YH12852 in the world except for South Korea.
As of 11:11 a.m. on Thursday, Yuhan shares rose 3 percent to 67,200 won after hitting as high as 72,900 won
By Minu Kim
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