ProQR Therapeutics N.V. (NASDAQ: PRQR) soared by more than 30% in pre-market trading on Thursday after the Dutch biotechnology company announced the expansion of its licensing and collaboration agreement with Eli Lilly (LLY).
The collaboration was originally announced in September last year. This partnership used ProQR’s proprietary Axiomer RNA (Ribonucleic acid) editing platform to target disorders of the liver and nervous system.
As part of the expanded agreement, ProQR will provide Lilly “access to additional targets in the central nervous system and peripheral nervous system with ProQR’s Axiomer platform.”
In return, PRQR will receive $75 million which includes an upfront payment and an equity investment. LLY will also have the option to further expand this collaboration for a consideration of $50 million. In addition, Lilly can also choose to provide PRQR access to the LLY’s “proprietary delivery technology for its wholly-owned pipeline.”
Based on PRQR’s original agreement with LLY and this extended collaboration, the company is eligible “to receive up to approximately $3.75 billion in research, development and commercialization milestones, as well as tiered royalties of up to mid-single digit percentage on product sales.”
However, even with today’s share gains, PRQR stock has tanked by around 80% this year.
