On December 8, 2016, Catalyst Biosciences Inc (NASDAQ:CBIO) entered into a definitive agreement with Wyeth LLC, a wholly-owned subsidiary of Pfizer Inc. following the June 1, 2015 termination of the research and license agreement that was entered into on June 29, 2009 between the Company and Wyeth to collaborate on the development of novel human Factor VIIa products. Pursuant to the Agreement, Wyeth has granted the Company an exclusive license to Wyeth’s proprietary rights that apply to Factor VIIa variants, CB 813a and CB 813d, to research, develop, manufacture and commercialize the Products. Wyeth has also transferred and will transfer to the Company documentation related to the development, manufacturing and testing of the Products, including the Investigational New Drug application.
In connection with the license granted by Wyeth to the Company, the Company agreed to make contingent cash payments to Wyeth in an aggregate amount equal to up to $17.5 million, payable upon the achievement of clinical, regulatory and commercial milestones. Following commercialization of any Product, Wyeth would also receive a single-digit royalty on net Product sales on a country-by-country basis for a predefined royalty term.
In the wake of the announcement, Catalyst Biosciences shares are skyrocketing 110% in pre-market trading. CBIO has a 1-year high of $4.57 and a 1-year low of $0.53. The stock’s 50-day moving average is $0.70 and its 200-day moving average is $1.17.
On the ratings front, H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on CBIO, with a price target of $3.50, in a report issued on October 5. The current price target represents a potential upside of 548% from where the stock is currently trading. According to TipRanks.com, Selvaraju has a yearly average loss of 10.2%, a 30% success rate, and is ranked #4168 out of 4274 analysts.
Catalyst Biosciences, Inc. is a clinical-stage biopharmaceutical company. It focuses on creating and developing novel medicines to address serious medical conditions for patients who need new or better treatment options. The company was founded on August 5, 2002 and is headquartered in South San Francisco, CA.