Tetraphase Pharmaceuticals Inc (NASDAQ: TTPH) rose following announcement of development agreement with Everest Medicines.
The Watertown, Mass.-based company made the announcement Tuesday that it had entered into an exclusive licensing agreement with Everest, a C-Bridge Capital-backed biopharmaceutical company based in China, to develop and commercialize eravacycline in mainland China, Taiwan, Hong Kong, Macau, South Korea, and Singapore
Under the terms of the agreement, Tetraphase will receive an initial upfront payment of $7.0 million and may receive clinical and regulatory milestones of up to $16.5 million as well as annual sales milestones of up to $20.0 million.
Everest will be solely responsible for the development and commercialization of eravacycline in the Territories.
Tetraphase and Everest will establish a joint steering committee to review and oversee all of Everest’s development and commercialization plans. Tetraphase will also be eligible to receive double digit tiered royalties on net sales of eravacycline in the Territories.
Said CEO Guy Macdonald, "Our agreement with Everest marks an important step in our plans to bring eravacycline to market on a global level.
"With positive Phase 3 data evaluating IV eravacycline in cIAI, our NDA under review by the FDA in the U.S. and our Marketing Authorization Application also under review in Europe, both for cIAI, we are expanding our commercialization strategy to China and other Asian territories and countries."
Tetraphase is a biopharmaceutical company using its proprietary chemistry technology to create novel antibiotics for serious and life-threatening bacterial infections, including those caused by many of the MDR bacteria highlighted as urgent public health threats by the CDC.
Its shares approached noon Wednesday up nine cents, or 4.3%, to $2.17.
