Shares of AnaptysBio saw an 11% increase following the approval of a treatment indication by the U.S. Food and Drug Administration (FDA). The treatment utilizes a drug licensed from AnaptysBio by GSK.
FDA Approval for Jemperli in Endometrial Cancer Treatment
On Monday, the FDA approved the use of Jemperli in combination with carboplatin and paclitaxel (chemotherapy) for the treatment of adult patients with mismatch repair deficient/microsatellite instability-high primary advanced or recurrent endometrial cancer. This new indication was supported by a supplemental Biologics License Application that received Priority Review and was approved ahead of the Sept. 23 Prescription Drug User Fee Act action date.
AnaptysBio Shares and Development of Jemperli
AnaptysBio shares previously reached a 52-week low of $16.66 but have shown a 9% decrease in the past 12 months. Jemperli, the drug in question, was discovered by AnaptysBio and then licensed to Tesaro, now part of GSK, under a collaboration and exclusive license agreement signed in March 2014. GSK is responsible for the ongoing development and commercialization of Jemperli.
Royalties and Milestones for AnaptysBio
As part of the licensing agreement, AnaptysBio is entitled to receive milestones and tiered royalties based on sales of Jemperli. The company will receive 8% royalties for net sales below $1 billion and royalties ranging from 12% to 25% for sales above $1 billion.