Matrix deal has a big upside

Matrix Pharmaceutical Inc. (MATX) has entered into an agreement with Medeva plc for the commercialization of MPI 5003, MATX's therapeutic implant for genital warts and skin cancers, for both the U.S. and European markets.

Medeva will pay $10 million for a 6 percent equity stake in MATX, representing 666,667 shares priced at $15 per share. Craig McMullen, MATX president and CEO, said the company expects to receive an additional $12 million in milestone and development payments by the end of 1994. Including the minimum purchase commitments, the deal could be worth $80 million...