One of the best performing stocks in North America Monday morning is Acasti Pharma (NASDAQ:ACST)(TSX-V:ACST), with shares of the Laval, Quebec-based biopharmaceutical company soaring on news of a potential licensing deal for its prescription drug candidate CaPre for severe hypertriglyceridemia.
Hypertriglyceridemia is characterized by high levels of triglycerides (a type of fat) in the blood that can lead to pancreatitis, which leads to a higher risk for stroke, heart attack and cardiovascular disease.
More than three million Americans are diagnosed with the severe form of the conditional annually. CaPre is a highly purified omega-3 phospholipid concentrate derived from krill oil to treat this patient population.
Acasti said Monday morning that it has penned a non-binding term sheet with an unnamed "leading China-based pharmaceutical company." The term sheet contemplates granting exclusive rights to CaPre in certain Asian countries, including China, a region where hypertriglyceridemia is very prominent.
According to Acasti, the negotiations are considering an $8-million upfront payment upon signing a definitive agreement and other development and commercialization milestones that could bring in more than $125 million, as well as double-digit royalties.
While optimistic, the agreement is still speculative and subject to the companies entering into a binding definitive agreement. Still, markets are cheering the possibility, sending shares of U.S.-listed ACST as high as $3.25 in morning action from a $1.27 close on Friday, representing the highest level since October 2015.
Shares have pulled back from the initial spike, trading at $2.28 for a gain of 79.9% about an hour into the trading session. In Canada, where shares are thinly traded, the reaction is far more muted. Not a share has traded yet today
