PTC Therapeutics Shares Jump on Pact With Novartis

By Ian Walker

PTC Therapeutics shares rose 18% in premarket trading after the company said it signed a collaboration agreement and licensing deal worth up to $2.9 billion with Novartis for its Huntington's disease program--PTC518.

The Warren, N.J., company said Monday that under the deal, Novartis will make an upfront payment of $1.0 billion and up to $1.9 billion in development, regulatory and sales milestones.

Confirming the deal, the Swiss pharmaceutical company said the agreement bolsters its neuroscience pipeline and reflects the company's strategic focus on neurodegenerative diseases with high unmet needs.

Novartis will also share profits in the U.S. and pay tiered royalties on ex-U.S. sales.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

12-02-24 0747ET