Acasti Pharma Shares Go Flying After Entering Agreement with a Leading Chinese Pharmaceutical Company

01:35 11/20/2017

A Canadian biopharmaceutical company, Acasti Pharma Inc. ACST , who specializes in the manufacturing of its prescription drug CaPre (treatment of severe hypertriglyceridemia) announced they have entered into a non-binding contract with a top China pharmaceutical company.

Some terms of the negotiation are withheld and remain secret but once the contract is signed, would grant the Chinese company an exclusively license to manufacture and sell the CaPre drug in certain Asian countries.

Asia has been known to have a high frequency of hypertriglyceridemia in their rural areas so this potential partnership could be a significant opportunity for Acasti ACST  and CaPre.

Upon a definitive agreement, Acasti would receive an US$8 million signing bonus plus additional commercial milestone payments more than US$125 million. The Chinese pharmaceutical company promises to pay “double-digit” royalties on net sales.

Since the term of the contract is non-binding, there still may be a possibility of the contract to fall under. The signing fees and additional payments will not be made to Acasti until actual documents are signed and filed.

Share of Acasti ACST  moved to a new 52-week high of $3.36 a pop which was a 164% move from Friday’s close, after the press release was announced.

The completion of this contract is essential and could separate Acasti Pharma from the remaining competition if the deal is finalized. Finalization of the contract could send shares flying again to break even newer highs. This is something you might want to keep watch as the time moves forward.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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