AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) announced the receipt of a $4 million research and development payment from EUSA Pharma related to the approval of FOTIVDA® (tivozanib) for the treatment of adult patients with advanced renal cell carcinoma in Europe, and a $0.5 millionmilestone payment from CANbridge related to manufacturing development activities for AV-203, AVEO’s clinical-stage ErbB3 (HER3) inhibitory antibody candidate.

“These payments further strengthen our balance sheet while demonstrating the value of our partnerships in advancing AVEO’s pipeline,” said Michael Bailey, president and chief executive officer of AVEO. “Additionally, these payments add to our current cash on hand, which was expected to fund operations into the fourth quarter of 2018. We look forward to several additional key milestones in the coming quarters, including the expected presentation of tivozanib-nivolumab combination Phase 1 TiNivo study results this fall, and the anticipated readout of our pivotal Phase 3 TIVO-3 trial in the first quarter of 2018.”

Under the terms of their December 2015 agreement, EUSA Pharma has agreed to pay AVEOup to $390 million in future milestone payments and research and development funding, assuming successful achievement of specified development, regulatory and commercialization objectives. In addition, a tiered royalty will be due to AVEO ranging from a low double-digit up to mid-twenty percent on net sales of tivozanib in the agreement’s territories. With European approval, AVEO will be eligible for up to $12 million in milestones from EUSA based on reimbursement and regulatory approvals. In the territories licensed to EUSA, thirty percent of milestone and royalty payments received by AVEO, excluding research and development payments such as the one announced today, are due to Kyowa Hakko Kirin (KHK) as a sublicensing fee. In the territories retained by AVEO, the royalty obligation to KHK ranges from the low- to mid-teens on net sales.

In March 2016, AVEO announced an exclusive collaboration and license agreement, granting CANbridge worldwide rights to AV-203, excluding the United States, Canada, and Mexico. Under the terms of the collaboration and license agreement, AVEO is eligible to receive up to $132 million in future reimbursement and milestone payments, assuming the successful achievement of specified development, regulatory and commercialization objectives, as well as a tiered royalty, with a percentage range in the low double digits, on net sales of AV-203 in the partnered territories.

AVEO has retained North American rights to tivozanib and AV-203.

Shares of AVEO Pharmaceuticals closed yesterday at $3.5, down $-0.22 or -5.91%. AVEO has a 1-year high of $4.24 and a 1-year low of $0.50. The stock’s 50-day moving average is $3.09 and its 200-day moving average is $1.56.

On the ratings front, AVEO has been the subject of a number of recent research reports. In a report issued on August 28, Piper Jaffray analyst Edward Tenthoff reiterated a Buy rating on AVEO, with a price target of $4.50, which implies an upside of 29% from current levels. Separately, on June 30, FBR’s Vernon Bernardino reiterated a Buy rating on the stock and has a price target of $3.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Edward Tenthoff and Vernon Bernardino have a yearly average return of 7.7% and 5.9% respectively. Tenthoff has a success rate of 46% and is ranked #675 out of 4642 analysts, while Bernardino has a success rate of 32% and is ranked #1066.

AVEO operates as a biopharmaceutical company, which engages in the advancement of therapeutics for oncology and other areas of unmet medical need. Its products include Tivozanib, Ficlatuzmab, AV-203, AV-380, and AV-353. It focuses on the development of its lead candidate, Tivozanib, in North America as a treatment for renal cell carcinoma and other cancers.