Agios Pharmaceuticals (AGIO) will sell its oncology business to Servier for up to $2 billion, the biotech company said Monday. In response, AGIO stock skyrocketed.
Under the terms of the deal, Agios will receive $1.8 billion in cash up front. In addition, Servier will make a $200 million regulatory milestone payment for brain cancer drug, vorasidenib. Agios will also receive future royalties on U.S. net sales of leukemia drug Tibsovo and vorasidenib.
The deal frees Agios up to focus on its drug, mitapivat, in anemia treatment, and its pipeline of treatments for genetic diseases.
In premarket trading on the stock market today, AGIO stock soared 33.7% near 44.40.
More to follow.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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