Scynexis (NASDAQ:SCYX) stock is taking off on Tuesday as investors react to news of an exclusive license agreement for Brexafemme.
Brexafemme is an “antifungal for the treatment of vulvovaginal candidiasis (VVC) and for reduction in the incidence of recurrent VVC (RVVC).” Investors will also note that it has already been approved by the U.S. Food and Drug Administration (FDA).
The big news today is GSK (NYSE:GSK) signing a rights deal for the commercialization of Brexafemme. It also covers the ongoing development of the drug as a treatment for invasive candidiasis. The current trial for this use of the treatment is in Phase 3.
David Angulo, President and CEO of Scynexis, said the following about the deal:
“This agreement represents a major milestone for SCYNEXIS, maximising Brexafemme’s commercial potential in VVC and further validating our vision of the critical role for this first-in-class antifungal in invasive infections.”
Details of the Deal Boosting SCYX Stock
First off, investors will note that GSK is making an upfront payment of $90 million to Scynexis. The agreement also includes potential milestone payments of up to $503 million. Also, Scynexis has the right to royalty payments on sales of Brexafemme.
Today’s news brings with it heavy trading for SCYX stock as investors buy shares. As of this writing, more than 22 million shares have changed hands. That’s a massive surge in trading compared to its daily average volume of 419,000 shares.
SCYX stock is up 69.5% as of Thursday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
