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Calithera surges on arginase deal with Incyte

January 31, 2017 12:42 AM UTC

Calithera Biosciences Inc. (NASDAQ:CALA) jumped $2.15 (47%) to $6.75 on Monday after granting Incyte Corp. (NASDAQ:INCY) worldwide rights to Calithera's CB-1158 for hematology and cancer indications. The arginase 1 (ARG1) and ARG2 inhibitor is in a Phase I/II trial to treat advanced or metastatic solid tumors, with data expected this year.

Calithera will receive $45 million in cash up front, plus $8 million through the sale to Incyte of 1.7 million shares at $4.65. Calithera is eligible for $430 million in milestones, plus tiered low to mid-double digit royalties on ex-U.S. sales...