CymaBay grants Kowa U.S. rights to gout candidate

CymaBay Therapeutics Inc. (NASDAQ:CBAY) granted the Kowa Pharmaceuticals America Inc. subsidiary of Kowa Co. Ltd. (Nagoya, Japan) rights in the U.S. to arhalofenate (MBX-102), which is in development to treat gout. CymaBay announced the news after market hours Tuesday, and added $1.22 (70%) to $2.95 in early after-hours trading.

CymaBay is to receive $5 million up front and $10 million in near-term milestones, including the start of a planned Phase III program. It is eligible for $190 million in additional milestones, plus tiered sales royalties. Kowa will be responsible for development and commercialization, including the planned Phase III program. CymaBay will retain all rights to arhalofenate outside the U.S. ...