01.07.2024 15:21:52
|
Orion Stock Up On FY24 Outlook Upgrade After Opevesostat Deal With Merck
(RTTNews) - Orion shares were gaining around 8 percent in Finland after the Finnish pharmaceutical company upgraded its fiscal 2024 outlook following a deal with U.S. Drug major Merck & Co., Inc. (MRK) regarding opevesostat (MK-5684/ODM-208).
The mutual exercise of an option to convert the companies' ongoing co-development and co-commercialization agreement provides Merck global exclusive rights to Opevesostat, an investigational CYP11A1 Inhibitor, for the treatment of metastatic castration-resistant prostate cancer.
Orion and Merck announced that notice has been provided of the mutual exercise of an option for opevesostat and other candidates targeting CYP11A1 into an exclusive global license for Merck.
Due to the decision, Orion said it will release the 60 million euros item reserved to cover its share of accrued R&D costs related to the co-development from the balance sheet, which will now have a positive impact on both third-quarter net sales and operating profit.
Orion also said all of its businesses have developed positively during the first half of the year.
For the full year, the company now expects net sales to be 1.44 billion euros to EUR 1.48 billion euros, higher than previous estimate of 1.34 billion euros to 1.41 billion euros.
Operating profit is now estimated to be 350 million euros to 380 million euros, compared to previously expected 280 million euros to 310 million euros.
As announced under the companies' original co-development and co-commercialization agreement, each party was granted an option to convert the co-exclusive license into an exclusive global license for Merck.
With the exercise of the option, Merck will gain global exclusive rights to develop and commercialize opevesostat and other candidates targeting CYP11A1 covered by the agreement.
Under the deal terms, Orion is now eligible to receive development milestone payments up to $30 million, regulatory milestone payments up to $625 million and sales-based milestone payments up to $975 million as well as annually tiered royalty payments ranging from a low double-digit rate up to a rate in the low twenties on net sales for any commercialized licensed product.
The company noted that annual sales exceeding several billion US dollars would be required to reach the total amount of the sales milestones and higher end of the royalty rate. In addition, as a result of the exercise of the option, Merck will now assume full responsibility for all past and future development and commercialization expenses associated with the candidates covered by the agreement.
Orion will retain responsibility for the manufacture of clinical and commercial supply for Merck. No payment is associated with the exercise of the option.
The exclusive global license is subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions, and is expected to become effective in the third quarter of 2024.
In Finland, Orion shares were trading at 43.05 euros, up 8%.
For More Such Health News, visit rttnews.com
Wenn Sie mehr über das Thema Aktien erfahren wollen, finden Sie in unserem Ratgeber viele interessante Artikel dazu!
Jetzt informieren!
Nachrichten zu Merck Co.mehr Nachrichten
31.12.24 |
Minuszeichen in New York: Dow Jones zum Handelsende leichter (finanzen.at) | |
31.12.24 |
Handel in New York: Dow Jones legt am Nachmittag den Rückwärtsgang ein (finanzen.at) | |
31.12.24 |
Dow Jones-Handel aktuell: Dow Jones zeigt sich schwächer (finanzen.at) | |
31.12.24 |
Dow Jones 30 Industrial-Titel Merck-Aktie: So viel hätten Anleger mit einem Investment in Merck von vor 3 Jahren verdient (finanzen.at) | |
31.12.24 |
Dow Jones-Handel aktuell: Dow Jones zum Start des Dienstagshandels mit Zuschlägen (finanzen.at) | |
30.12.24 |
Montagshandel in New York: Dow Jones verbucht zum Ende des Montagshandels Verluste (finanzen.at) | |
27.12.24 |
Zurückhaltung in New York: Dow Jones notiert zum Handelsende im Minus (finanzen.at) | |
27.12.24 |
Börse New York in Rot: Dow Jones verliert zum Start (finanzen.at) |
Analysen zu Merck Co.mehr Analysen
Aktien in diesem Artikel
Merck Co. | 96,00 | -0,41% |