Opexa stock quadruples on deal with Novartis

Opexa Therapeutics, a Texas, USA-based company developing a novel T-cell immunotherapy for multiple sclerosis, it has entered into an exclusive agreement with Swiss drug major Novartis, for the further development of Opexa's novel stem cell technology. The news sent the US firm's stock rocketing 400%, after the group's previous day's valuation of just around $6 million.

This technology, which has generated preliminary data showing the potential to generate monocyte derived islet cells from peripheral blood mononuclear cells, was in early preclinical development at Opexa.

Under the terms of the agreement, Novartis will acquire the stem cell technology from Opexa and will have full responsibility for funding and carrying out all research, development and commercialization activities. Opexa will receive an upfront cash payment of $3 million, plus an additional $1 million as a technology transfer fee to be paid over the course of a six month period. Total payments to Opexa, including the upfront payment, the technology transfer fee and development and commercial milestone payments could exceed $50 million not including royalties. Opexa is also eligible to receive royalty payments from the sale of any products resulting from the use of the technology and retains an option on certain manufacturing rights.