Shares of Biogen (BIIB) were up pre-market Wednesday after the biotechnology firm said it agreed to exclusively license late-stage experimental drug MT-1303 from Mitsubishi Tanabe Pharma.
MT-1303 is an oral compound that targets the sphingosine 1-phosphate receptor. Biogen said it will assess the drug’s potential in multiple sclerosis (MS), ulcerative colitis, Crohn’s disease and other autoimmune indications.
Under the terms of the deal, Biogen will gain worldwide rights to MT-1303, excluding Asia. The company will be responsible for commercialization and for development costs outside of Asia. Biogen will pay Mitsubishi Tanabe an upfront payment of $60 million and up to $484 million in additional milestone payments.
The transaction is slated to close in Q4 2015.
In recent pre-market trade, BIIB was moving in the lower half of the 52-week range of $265.00 to $480.18.