Shares of vTv Therapeutics (NASDAQ:VTVT) are on the move higher as the company inks a license agreement with Huadong Medicine's Hangzhou Zhongmei Huadong Pharmaceutical Co., Ltd. granting it exclusive rights to develop, manufacture and commercialize vTv's GLP-1R agonist program in China, Hong Kong and 12 other Asian countries (ex. Japan).
Under the terms of the agreement, vTV Therapeutics will run a Phase 2 Multi-Regional Clinical Trial (MRCT) including sites in the US and other regions in the Pacific Rim.
The licensing agreement includes rights to TTP273, an oral small molecule GLP-1R agonist, which met its primary endpoint and demonstrated a statistically significant reduction in HbA1c in a Phase 2 trial of type 2 diabetes. The compound was well-tolerated, with negligible incidences of nausea and vomiting across all arms of the study. Trends towards weight loss were also observed.
vTv will receive an $8-million upfront payment in connection with the signing of the agreement subject to satisfaction of customary conditions and is eligible for up to an additional $75 million in milestone payments related to development, regulatory and commercial milestones. In addition, vTv will be eligible to receive royalty payments on sales of commercialized products in the territories.
As mentioned off the top, shares of VTVT are trading higher to the tune of $0.31, or 7.05% at $4.71 on today's news. The stock has been in a recent downtrend of late, but that trend has been dissipating over the last couple of weeks.
