Pfizer Inc. will pay Avant Immunotherapeutics's Celldex Therapeutics Inc. unit to acquire the exclusive global license of a brain cancer vaccine treatment which is currently in Phase 2 development, the companies announced late Wednesday.
The two firms agreed that Pfizer will pay $40 million up front adding an equity investment of $10 million to Avant and it will fund all the costs for the development of the compound, reports showed.
Biopharmaceutical Avant which specializes in the discovery and development of vaccines for the treatment of cancer, infectious and inflammatory diseases is eligible for a milestone payment exceeding $390 million and double-digit royalties for CDX-110.
The groups plan to develop the drug CDX-110 to treat different types of cancers including breast, ovarian, advanced prostate and colorectal.
Shares of Avant rose significantly 43.28 percent to $14.40 on after-trading today in the Nasdaq.