Molecular Templates up 41% premarket on Takeda development deal

• Thinly traded micro cap Molecular Templates (NASDAQ:MTEM) is up 41% premarket on increased volume in response to its deal with Takeda Pharmaceutical (TKPYY)(OTCPK:TKPHF) for the joint development of CD38-targeted engineered toxin antibodies (ETBs) for the treatment of multiple myeloma and other diseases.
• The companies have already developed preclinical-stage CD-38-targeted ETBs under  a prior discovery collaboration.
• Under the terms of the partnership, MTEM will receive $30M upfront, up to $632.5M in milestones if it exercises its co-development option or up to $337.5M if it does not and royalties on net sales. Development costs will be shared equally.