Myovant Sciences Ltd. (NYSE: MYOV) shares shot up on Monday after the company announced a new collaboration with the pharmaceutical giant Pfizer Inc. (NYSE: PFE) for its tumor treatment across a couple of indications.
Pfizer and Myovant announced a collaboration to develop and commercialize relugolix in oncology and women’s health in the United States and Canada. Pfizer also will receive an exclusive option to commercialize relugolix in oncology outside those two countries, excluding certain Asian countries.
Under the terms of the agreement, Myovant and Pfizer will jointly develop and commercialize Orgovyx (relugolix) in advanced prostate cancer and, if approved, relugolix combination tablet in women’s health in the United States and Canada. Myovant and Pfizer will begin co-promoting Orgovyx for advanced prostate cancer in early 2021.
In terms of the money, the companies will equally share profits and certain expenses for Orgovyx and relugolix with Myovant recording the revenues. Myovant will remain responsible for regulatory interactions and drug supply and continue to lead clinical development for relugolix. Also, Myovant will receive up to $4.2 billion, including an upfront payment of $650 million, $200 million in potential regulatory milestones for U.S. Food and Drug Administration (FDA) approvals. It will received tiered milestones as well for reaching points up to $2.5 billion in net sales.
The FDA approved Orgovyx on December 18, 2020, for the treatment of adult patients with advanced prostate cancer.
Separately, the relugolix combination tablet is currently under regulatory review by the FDA for women with uterine fibroids, with a target action date of June 1, 2021. Relugolix combination tablet is also under development for women with endometriosis, with a New Drug Application submission expected in the first half of 2021.
Pfizer stock traded at $37.01 on Monday, in a 52-week range of $26.45 to $43.08. The consensus price target is $41.79.
Myovant stock was up 22% to $27.89. It has a 52-week range of $5.98 to $30.89, and analysts have a consensus price target of $33.14 for the stock.