C4 Therapeutics, a biopharmaceutical company, has seen a significant surge in its shares, rising by 77% to $2.09. The boost comes after the company announced an exclusive license and collaboration agreement with Merck. This partnership aims to develop drugs that specifically target and neutralize disease-causing proteins found in cancer cells.
The stock had reached its lowest point in the past 62 weeks, dropping to $1.06 just last week. Over the course of the last year, it has experienced a 75% decrease.
Under this new agreement, C4 Therapeutics will receive an upfront payment of $10 million. The collaboration with Merck will focus on the development of degrader-antibody conjugates directed towards an initial oncology target. The specifics of this target have not been disclosed but are exclusively part of this collaboration.
As part of the agreement, C4 Therapeutics stands to gain milestone payments totaling $600 million for the degrader-antibody conjugates directed at the initial target. Additionally, they will receive tiered royalties based on future sales.
Merck also has the option to extend the collaboration to include three more targets exclusively tied to this partnership. In such a scenario, C4 Therapeutics would receive option exercise payments, along with potential milestones and royalties that could result in up to $2.5 billion in total payments across the entire collaboration.
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