A recent bit of biotech news involving Curis has CRIS stock flying high on Monday.
Curis (NASDAQ:CRIS) has announced that it has reached a deal with Oberland Capital Management in connection to Erivedge. This has it offering selling rights for a portion of royalty revenues to the group for $135.70 million.
According to Curis, the deal with Oberland Capital Management has it receiving a starting payment of $65.00 million. It is then able to collect additional payments of up to $70.70 million from the company. However, Erivedge must reach certain milestones for CRIS to receive these payments.
The biotech news also includes Curis already making good use of the money from the deal. It notes that it used a portion of the cash from the deal to pay off some of its debts. It is also using the remaining $30 million from the upfront payment to funds its operations.
“We believe this structure provides Curis with substantial non-dilutive capital today, while retaining significant participation in the future upside potential of Erivedge,” James Dentzer, President and CEO of Curis, said in a statement. “The proceeds of this transaction further strengthen our cash position as we fund our three lead therapeutic candidates to reach their near term development catalysts and beyond.”
Erivedge is a drug from Curis that is used to treat patients suffering from Hedgehog signaling due to genetic mutations. The drug does this by targeting a protein called Smoothened.
CRIS stock was up 31% as of Monday morning and is up 74% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.