JAZZ - Zymeworks surges 14% on license deal with Jazz for cancer drug zanidatamab

Jazz Pharmaceuticals ( NASDAQ: JAZZ ) signed a licensing agreement for development and commercialization rights to  Zymeworks' ( NYSE: ZYME ) cancer drug zanidatamab in certain regions.

Under the agreement, Jazz will pay $50M upfront, after US antitrust clearance, and get exclusive license to develop and sell zanidatamab in the U.S., Europe, Japan and all other territories except for those Asia/Pacific territories which Zymeworks had licensed to BeiGene ( NASDAQ: BGNE ), the companies said in a statement on Wednesday.

In addition, if Jazz decides to continue the collaboration after results from a study called HERIZON-BTC-01, it will make a one-time payment of $325M to Zymeworks.

Zymeworks is also eligible to receive up to $525M upon achieving certain regulatory milestones and up to $862.5M in potential commercial milestone for total potential payments of up to $1.76B. Zymeworks is also eligible to receive royalties between 10% and 20% on Jazz's net sales of the drug, if approved.

"This agreement reflects Jazz's strategic focus on opportunities where we can not only apply advanced technologies to address critical unmet patient needs, but where we can also leverage Jazz's existing integrated capabilities and global infrastructure to commercialize efficiently," said Rob Iannone, executive vice president, global head of research and development at Jazz.

The companies noted that results from the HERIZON-BTC-01 study are expected by end of the year.

The transaction is expected to close this year, subject to U.S. antitrust clearance.

ZYME +14.08% to $6.40 premarket Oct. 19

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