Spectrum Pharmaceuticals Inc said Handok Pharmaceuticals Co Ltd will develop and commercialize Spectrum's experimental cancer drug in South Korea as part of a deal valued at more than $19 million.
Handok will bear all the development and commercial costs for apaziquone, which is currently being tested for the treatment of non-muscle invasive bladder cancer. Spectrum will receive upfront payment, milestones and royalties as part of the deal.
Shares of Spectrum jumped 9 percent to $5.18 in pre-market trade. They closed at $4.74 Friday on Nasdaq.
Spectrum is currently conducting two late-stage clinical trials to test apaziquone's safety and efficacy in the same indication and aims to complete enrollment in both the studies by the year end.
Earlier this month, Spectrum signed an agreement with Japan's Nippon Kayaku Co Ltd to develop and market apaziquone in Asia. It also has a collaboration agreement with Allergan Inc for the drug in North America, Europe, and other key markets.
(Reporting by Esha Dey in Bangalore; Editing by Deepak Kannan)