Look Who's Buying 12.8% Stake In BLRX...

(RTTNews) - Shares of BioLineRx Ltd. (BLRX) are up more than 17 percent in pre-market trading Tuesday, following news of the Israeli company's multi-year strategic collaboration agreement with Novartis Pharma AG for screening and development of novel drug candidates. The two companies intend to develop up to three programs under this collaboration.

As part of the agreement, Novartis has acquired an initial 5 million American Depositary Shares of BioLineRx in a private transaction at a price of $2.00 per share for a total equity investment of $10 million. The investment is for 12.8% of BioLineRx's current shares outstanding.

The collaboration allows the two companies to jointly evaluate both clinical and pre-clinical stage projects presented by BioLineRx via a Joint Steering Committee, which will determine which projects to advance further in development and on what terms.

Novartis, which has the right to select projects at or reaching the clinical stage, will pay BioLineRx an option fee of $5 million and also fund 50% of the anticipated remaining development costs associated with establishing clinical proof-of-concept, in the form of an additional equity investment in BioLineRx.

BioLineRx's current pipeline has 10 assets, of which 6 are in clinical development. The company is currently focused on BL-8040, its lead oncology platform for the treatment of acute myeloid leukemia (AML), stem cell mobilization and other hematological indications, and on BL-7010, its lead immunology program for the treatment of celiac disease.

- BL-8040 is under phase II trial for the treatment of AML - with dose escalation expected to be completed early next year and final data slated for release in the second half of 2015. A phase 1 trial of BL-8040 for stem cell mobilization is also underway and final results are anticipated in late 2014 or early 2015.

- BL-7010 has completed phase I/II testing for celiac disease. A pre-IND meeting with FDA is expected to take place in the first half of 2015. A pivotal study of BL-7010 for EU is anticipated to begin next year.

The company's lead partnered asset, BL-1040, a novel resorbable polymer solution for the prevention of ventricular remodeling following an acute myocardial infarction (AMI), is under a CE Mark registration trial, with completion expected in mid-2015. In the U.S., the pivotal trial of BL-1040 is in planning stages.

BioLineRx had cash of $29.6 million as of September 30, 2014.

BLRX closed Monday's trading at $1.63. In pre-market trading on Tuesday, the stock is up more than 17% at $1.94.