Spruce Biosciences (NASDAQ:SPRB) shares have more than doubled today after it inked a major licensing deal with Kaken Pharmaceutical. The biopharmaceutical company has teamed up with Kaken for the development and commercialization of tildacerfont for the treatment of congenial adrenal hyperplasia (CAH) in Japan.
Under the deal, Spruce gets a $15 million upfront payment and also stands to receive additional development and commercial milestones as also royalties on sales in Japan. Further, Spruce also retains rights to the drug in all other geographies. Kaken will have the onus for gaining regulatory approvals in Japan for the drug.
Tildacerfont has been observed to be well tolerated in eight clinical trials and at present remains under evaluation for adult classic CAH, pediatric classic CAH, and polycystic ovary syndrome.
Despite today’s gains, Spruce shares are still down about 39% over the past year. The Street though, sees a further 160.2% potential upside in the stock based on a Strong Buy consensus rating and an average price target of $7.
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