Xilio Therapeutics (NASDAQ:XLO) stock is rocketing higher on Thursday after the clinical-stage biotechnology company signed an exclusive license agreement with Gilead Sciences (NASDAQ:GILD).
This agreement has Gilead taking over the development and commercialization responsibilities of Xilio Therapeutics’ XTX301. That’s a tumor-activated IL-12 currently undergoing a Phase 1 clinical trial, which Xilio Therapeutics will continue to handle.
The deal with Gilead has Xilio Therapeutics receiving an upfront payment of $43.5 million. That includes a cash payment of $30 million and an equity investment of $13.5 million in XLO stock.
To go along with that, Xilio Therapeutics is eligible for additional payments totaling $604 million. It will also receive “tiered royalties” for global sales of XTX301.
Bill Grossman, Senior Vice President of Oncology Clinical Development at Gilead, said this about the news:
“We believe IL-12 has the potential to treat a broad range of tumor types and are excited to partner with Xilio to advance XTX301, a tumor-activated IL-12, as a monotherapy and a combination therapy across a variety of solid tumors.”
XLO Stock Movement on Thursday
News of this agreement brings with it heavy trading of XLO stock. That has more than 23 million shares of Xilio Therapeutics’ shares changing hands as of this writing. That’s a massive increase compared to its daily average trading volume of about 226,000 shares.
XLO stock is up 168% 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.
