Molecular Partners Shares Drop 14% After Novartis Deal
January 18 2022 - 10:39AM
Dow Jones News
By Chris Wack
Molecular Partners AG shares fell 14% to $27.29 after the
company said it and Novartis entered into a license agreement under
which Novartis will in-license global rights to ensovibep.
Ensovibep is a DARPin antiviral therapeutic candidate to treat
Covid-19, which recently reported positive topline data from a
Phase 2 clinical study.
Molecular Partners said the agreement finalization triggers a
milestone payment of 150 million Swiss francs ($163.8 million) to
the company.
Under the license agreement, Molecular Partners will be eligible
to receive a 22% royalty on sales in commercial countries and
agreed to forgo royalties in lower income countries.
Molecular Partners said it expects to report CHF133 million cash
and cash equivalents as of Dec. 31 and estimates its cash runway to
extend well into 2025, excluding any potential royalty income as
well as potential further cash flows to or from its research and
development partners.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
January 18, 2022 10:24 ET (15:24 GMT)
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