In the United States and Canada, pharmaceutical corporation Myovant Sciences Inc. (MYOV) has recently signed a collaboration deal with Pfizer Inc. (PFE) to create and support relugolix.
Created by Myovant Sciences, the drug relugolix is targeted at treating some female disorders as well as male prostate cancer. As part of the cooperation, it is understood that Myovant Sciences will obtain an advance payment of $650 million from Pfizer. Based on the accomplishment of benchmarks, the corporation still has the right to another $200 million. Based on meeting those net revenue milestones of relugolix, Myovant Sciences will also earn tiered sales stage payouts. Furthermore, the profits from the selling of the drug would similarly be split by both companies.
Pfizer also has exclusive rights in the United States and Canada to market relugolix (except some Asian countries). Myovant Sciences will earn another $50 million and double-digit royalties on sales of the drug if Pfizer takes advantage of this chance.
The contract is important for Myovant Sciences, as Pfizer has more financial and human capital in multiple markets to sell the drug. This year, in collaboration with Pfizer, Myovant Sciences will start selling relugolix as a cure for advanced prostate cancer.
Relugolix’s promise is not yet completely realized because it is not been approved yet. But by June 1, 2021, the FDA plans to take a vote on the approval of a combined medication with relugolix for the treatment of uterine fibroids. In the first half of the year, Myovant Sciences already plans to apply for approval of its medication for the treatment of endometriosis.
Myovant Sciences Inc. (MYOV) stock was stable on Thursday with a slight rise of 0.23% o close the session at $21.46. Over the week, the stock is at a loss of 14.77% which increases t more than 22% since the year’s start. However, in over the year trading, the stock is at an increase of nearly 55% raising its market capitalization to just over $2 billion.