Intercept Pharmaceuticals (NASDAQ: ICPT) stocks surged more than 30% after announcing that it has entered into an agreement that includes rights for Advanz to commercialize orphan drug Ocaliva for PBC outside the U.S.
At the time of writing, ICPT stock was trading at $21.36, representing a gain of 29%.
The agreement also includes the transition to Advanz of Intercept’s international commercial and medical infrastructure.
Intercept will be compensated in the amount of $405 million upfront, and Advanz Pharma will contribute an additional $45 million if the company’s pediatric orphan exclusivity in Europe is extended.
It will also receive royalties on any future net sales of obeticholic acid in NASH outside of the United States if Advanz Pharma seeks marketing authorization for this indication outside of the United States.
Furthermore, Intercept will continue to be in charge of the global manufacturing and supply of obeticholic acid, while Advanz Pharma will be in charge of the packaging, distribution, and commercialization of the therapy in all markets other than the United States.
The majority of Intercept employees working outside of the United States will be transferred to Advanz Pharma, and the remaining international employees will remain with Intercept.
Intercept will keep a presence in the United Kingdom to manage its global supply chain, support its quality organization, and conduct global clinical trials.
“This agreement marks an important step forward for Intercept as the value it brings to our company allows us to significantly strengthen our balance sheet while providing us with greater strategic optionality during this transformational year and beyond,” said Jerry Durso, President and Chief Executive Officer of Intercept. “We are committed to investing in our core focus areas in the U.S., including our PBC business, potential future activities in NASH, and our advancing and expanding pipeline. At the same time, we are confident that the strong international team will continue to build on our successful PBC business as they transition to Advanz Pharma.”