Shares of the thinly traded nano-cap biotech aTyr Pharma Inc (NASDAQ: LIFE) were advancing strongly Monday on above-average volume.
The company announced a collaboration and licensing agreement with Kyorin Pharma for the development and commercialization of its lead candidate ATYR1923 for interstitial lung diseases in Japan.
The agreement provides for aTyr receiving an $8-million upfront payment; an additional $167 million in potential development, regulatory and commercial milestone payments; as well as tiered royalties on net sales in Japan.
In return, Kyorin receives the exclusive right to develop and commercialize ATYR in Japan for interstitial lung diseases.
"As in the U.S., ILDs represent an area of significant unmet medical need in Japan, and Kyorin's development and commercial capabilities will enhance our ability to improve the lives of patients with these serious conditions. We believe this collaboration further validates ATYR1923 and potentially accelerates development in other ILDs," a Tyr CEO Dr. Sanjay Shukla said in a statement.
Kyorin will fund all R&D, regulatory, marketing and commercialization activities in Japan, while aTyr is to supply all drug product as well as support development activities in Japan.
At last check, aTyr shares were rallying by 45.3% to $6.19 at the time of publication.
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