Shares of biotechnology company Nanobiotix (NASDAQ:NBTX) are up a massive 50% at the time of writing today after it entered into a major licensing agreement with Janssen Pharmaceutica for NBTXR3, an investigational radioenhancer. Janssen is part of Johnson & Johnson’s (NYSE:JNJ) Janssen Pharmaceuticals.
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Under the global co-development and commercialization deal, Janssen will get a worldwide license for NBTXR3 in collaboration with Johnson & Johnson’s Interventional Oncology R&D unit.
NBTXR3 is presently under evaluation in multiple studies for solid tumors as well as in combination with anti-PD-1 immune checkpoint inhibitors for the treatment of metastatic cancers. Importantly, with this strategic move, Nanobiotix gets a partner with global development as well as commercialization expertise.
Under the deal, the company will receive cash and operational support to the tune of $60 million. Janssen will have the onus for a Phase 2 trial of NBTXR3 in lung cancer and will also get the rights to take control of studies being currently undertaken by NBTX.
Additionally, NBTX stands to rake in $1.8 billion in success-based payments and nearly $870 million in milestone payments for various indications. The company will also receive tiered royalties in double digits on the sales of NBTXR3.
But there’s more, Nanobiotix also stands to receive equity investments of about $30 million from Johnson & Johnson Innovation. The deal remains subject to closing conditions and regulatory approvals and once the agreement becomes effective, NBTX sees its cash runway extending to the first quarter of next year!
Today’s price gains come on top of a nearly 56% surge in Nanobiotix shares over the past 52 weeks.
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