RPRX - Why PTC Therapeutics Soared 15% Higher Today
2023-10-19 19:02:30 ET
A new royalty deal was the fuel that powered biotech PTC Therapeutics (NASDAQ: PTCT) stock to a 15% gain on Thursday. That arrangement, which covers PTC's spinal muscular atrophy (SMA) treatment Evrysdi, features a hefty upfront payment that could also bring in hundreds of millions of dollars in additional monies.
Before market open that day, PTC announced that it agreed upon a royalty deal -- an extension of an existing arrangement with (appropriately) Royalty Pharma (NASDAQ: RPRX) . Under the new terms, Royalty is acquiring additional royalties on Evrysdi for a $1 billion upfront payment.
Additionally, PTC has the option to sell up to its maximum retained royalties on the drug for up to $500 million. As an alternative, it can choose to sell half of that take to Royalty Pharma for as much as $250 million.
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Why PTC Therapeutics Soared 15% Higher Today