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ARTICLE | Company News

KalVista leaps after Merck deal in DME

October 10, 2017 12:15 PM UTC

KalVista Pharmaceuticals Inc. (NASDAQ:KALV) shares jumped $2.79 (38%) to $10.17 on Tuesday after the company granted Merck & Co. Inc. (NYSE:MRK) options to acquire its most advanced program KVD001, an intravitreal plasma kallikrein inhibitor (KLKB1), along with future oral plasma kallikrein inhibitors to treat diabetic macular edema.

KalVista will receive $37 million up front and is eligible for $715 million in additional payments, including option exercise fees and milestones for each program, as well as tiered royalties. Merck also invested $9.1 million in KalVista through the purchase of 1.1 million shares at $8.50 in a private placement, giving it a 9.9% stake. The price is a 16% premium to KalVista's close of $7.35 on Monday, before the deal was announced early Tuesday...