Under terms of the deal, Pfizer granted Celcuity exclusive rights to the potential breast cancer drug known as gedatolisib. The drug has shown promise in 103 patients in early-stage testing, Celcuity said in a news release.
The biotech company paid Pfizer a total of $10 million up front — split equally in cash and stock. Pfizer is also eligible to receive up to $330 million in milestone payments and tiered royalties on sales.
In morning trading on the stock market today, Celcuity shares rocketed 64.5% near 23.50. The biotech stock easily broke out of a consolidation with a buy point at 18.10, according to MarketSmith.com. Pfizer stock rose 1.5% near 36.50.
Biotech Stock Rockets
Gedatolisib is being tested as a treatment for patients whose breast cancer is tied to estrogen receptors and not another protein called HER2. About 70%-80% of breast cancers in the U.S. express the estrogen receptor, Celcuity said in a news release.
Most people receive — and ultimately become resistant to — endocrine therapies.
Celcuity is testing the theory that it can block pathways that allow the body to resist endocrine treatments. It plans to test a combination of gedatolisib and an endocrine therapy with another cancer drug.
Preliminary analysis suggests the combination achieved superior objective response rates compared with historical treatment data. Most side effects have been mild or moderate, another bullish point for the biotech stock.
Investors in the biotech stock are now waiting for a Phase 2 and Phase 3 study in the first half of 2022.
High RS Rating
Biotech stock Celcuity is highly rated, according to IBD Digital. Shares have a strong Relative Strength Rating of 92 out of a best-possible 99. The RS Rating measures the 12-month performance of all stocks. Celcuity ranks in the top 8% on this metric.
But shares have a Composite Rating of 43, putting the biotech stock’s fundamental and technical measures in the bottom half of all stocks.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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