Can-Fite Biopharma (NYSEAMERICAN:CANF) stock is on the rise Tuesday after announcing a $42.7 million deal with Ewopharma.
The deal between the two companies has Ewopharma obtaining exclusive distribution rights for two Can-Fite Biopharma drugs. It also has it making an upfront payment of $2.25 million to CANF with a possible $40.45 million available from milestones and royalties.
The first drug in the deal is Piclidenoson, which is used to treat psoriasis. It gives Ewopharma the exclusive market and distribution rights for the drug in Central Eastern European countries.
The deal also covers Namodenoson. This is a treatment for liver disease, including hepatocellular carcinoma and nonalcoholic steatohepatitis. The rights in this deal cover marketing and distribution in Central Eastern European countries and Switzerland.
The deal doesn’t stop there, either. It also allows for Ewopharma to extend its rights for these two drugs. That can happen if Can-Fite Biopharma discovers new uses for the treatments.
Dr. Sari Fishman, vice president of Business Development at CANF, said this about the news sending CANF stock higher today.
“We are very pleased to enter into this distribution agreement with Ewopharma, a leader in pharmaceutical distribution in Eastern Europe. This is a high-value deal that brings Can-Fite non-dilutive funding, and upon regulatory approval, it gives our products immediate access and distribution in the European market.”
News of the deal increased interest in CANF stock today. As of this writing, more than 118 million shares of the stock have changed hands. That’s a major increase over its daily average trading volume of 1 million shares.
CANF stock was up 63.2% as of Tuesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.