Aveo gains on Novartis licensing deal

Aveo Pharmaceuticals Inc. (NASDAQ:AVEO) rose $0.53 (45%) to $1.70 after it granted Novartis AG (NYSE:NVS; SIX: NOVN) an exclusive, worldwide license to preclinical candidate AV-380, in development to treat cachexia. Novartis paid $15 million up front for rights to the antibody against growth differentiation factor 15 ( GDF15) and related antibodies against the same target.

Aveo is eligible for $53 million in clinical milestones, $105 million in regulatory milestones and $150 million in commercial milestones, plus tiered royalties. Novartis will responsible for all development costs, and has an option to purchase Aveo's existing inventory of AV-380 for $3.5 million. ...