Shares of Ardelyx Inc. (ARDX) advanced 10.9% to $6.60 in premarket trading on Tuesday, Nov. 28, after the Fremont, Calif.-based firm and Kyowa Hakko Kirin Co. Ltd. signed a license pact for Ardelyx's lead investigational product, tenapanor.
The agreement gives Tokyo-based Kyowa Hakko Kirin exclusive rights to develop and commercialize tenapanor for the treatment of cardiorenal diseases in Japan.
As part of the pact, Ardelyx will receive an upfront payment of $30 million and is eligible to receive milestone payments of up to $130 million. In addition, Ardelyx is eligible to receive high-teen royalties throughout the term of the agreement.
Meanwhile, shares of Otonomy Inc. (OTIC) rose 5.6% to $5.70 following the San Diego firm's announcement after the market close on Monday that it plans to complete the clinical development to support registration of Otividex in the U.S. for the treatment of Ménière's disease. The company also said it plans to "advance multiple programs for the prevention and treatment of sensorineural hearing loss, and the treatment of tinnitus."
In addition, Otonomy said it is in talks to divest Otiprio. The company is eliminating employment positions and halting programs in connection with the commercialization and market support of Otiprio.
"This action does not impact the current approval status of OTIPRIO with the FDA or the ongoing review of the Supplemental New Drug Application (sNDA) for OTIPRIO in acute otitis externa," the company said.
In other news, Aratana Therapeutics Inc. (PETX) after the market close on Monday announced a proposed underwritten public offering of $35 million of shares. In addition, the Leawood, Kan.-based firm said it plans to give underwriters a 30-day option to buy up to an additional $5.25 million of shares.
Aratana shares were down 7.1% to $6.72 in premarket trading on Tuesday.