Prothena (NASDAQ:PRTA) is up 15% after hours on average volume in response to its announcement of a global collaboration with Celgene (CELG -0.3%) aimed at developing new therapies for neurodegenerative diseases.
The partnership will focus on three proteins implicated in the pathogenesis of neurodegenerative disorders: tau, TDP-43 and an unnamed target. Celgene has the exclusive right to license the candidates in the U.S. at the IND stage and has the option to acquire global rights after Phase 1. If it elects to do so, it will be responsible for funding all further clinical development and commercialization.
Under the terms of the agreement, Prothena will receive $100M upfront, a $50M equity investment (~1.2M shares at $42.57) by Celgene, potential exercise payments, milestones and royalties on net sales.
Prothena will host a conference call at 5:00 pm ET to discuss the collaboration.