By Sam Boughedda
OPKO Health Inc (NASDAQ:OPK) shares surged Wednesday on the back of news that its ModeX Therapeutics company has entered into an exclusive global license and collaboration agreement with Merck & Company Inc (NYSE:MRK) for the development of MDX-2201, ModeX's preclinical nanoparticle vaccine candidate targeting EBV.
As part of the deal, OPKO will receive a $50 million upfront payment and is eligible for milestone payments of up to $872.5M, as well as royalties on global sales.
The company's shares are currently up 10% at $1.17 after hitting a high of $1.32 earlier in the session.
OPKO said ModeX and Merck would jointly advance MDX-2201 to an Investigational New Drug (IND) application filing. After that, Merck will be responsible for clinical and regulatory activities and product commercialization.
"Merck represents the ideal partner to develop and commercialize a new vaccine candidate, and we are particularly proud to enter into this high-potential agreement so soon after completing the ModeX transaction last May," said Phillip Frost, Chairman, and Chief Executive Officer of OPKO.