Curis Inc (NASDAQ:CRIS) rallied Wednesday a day after saying in its statement of 2018 results that the deal to sell part of its royalty revenue to Oberland Capital Management LLC gives it the flexibility needed to focus on clinical work.
The biotech has agreed to sell for as much as $135.7 million the rights to part of the royalty revenue from a treatment approved for patients with advanced basal cell carcinoma.
Shares of Curis were up 5% to $2.11 in Wednesday's pre-market Nasdaq trading.
READ: Biotech company Curis rallies on deal worth up to $135.7M to sell part of carcinoma royalty revenue
"With our recently announced agreement with Oberland Capital, we secured the financial flexibility needed to ensure we can continue to move forward aggressively in our clinical execution,” Curis President and CEO James Dentzer said in a statement.
Highlights of 2018 included the initiation of a study of a combination of fimepinostat and venetoclax in the treatment of diffuse large B-cell lymphoma. The company is also working with Aurigene Discovery Technologies Ltd to develop first-in-class therapeutics in immuno-oncology and precision oncology.
As of December 31, cash, cash equivalents, marketable securities and investments for Lexington, Massachusetts-based Curis totaled $24.3 million. The sale of a portion of royalties for the Erivedge treatment to Oberland will provide net proceeds of about $30 million before closing costs and transaction fees, the company said.
For 2018, Curis reported a net loss of $32.6 million, or $0.98 per share, compared with a net loss of $53.3 million, or $1.79 per share, a year earlier.
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Contact Dennis Fitzgerald at [email protected]