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Summary
- Tuesday witnessed an intraday all-time-high for Can-Fite stocks, which surging more than 43 per cent
- The last one-year return of Can-Fite Bio Pharma is 80 per cent
- The surge came amid new distribution deal with Switzerland based Ewopharma
The stock price of Can-Fite Bio Pharma (NYSE American: CANF) soared over 43 per cent on Tuesday March 16, 2021, closing at C$2.92 apiece. The exponential rise of in the stock price of this biotechnology company came as a result signing an exclusive distribution agreement with Switzerland-based Ewopharma.
The Swiss company helps companies gain access to pharma markets in Central Eastern Europe.
The terms of the agreement are as follows:
- Ewopharma is required to pay US$2.25 million in upfront cash.
- Upon the achievement of regulatory and sales milestone, an additional US$40.45 million and 17.5 per cent royalties on net sales to be paid by Ewopharma.
- Ewopharma will be the sole entity with exclusive rights to market and sell Can-Fite’s leading drug Piclidenoson, which currently in a trial for psoriasis and COVID-19.
- Piclidenoson will be marketed and sold in Central Eastern European (CEE) countries.
- Namodenoson, Can-Fite's liver drug, will be sold in CEE countries and Switzerland.
- Ewopharma will have the right to extend the distribution agreement to new indications which may be identified by Can-Fite for its drug candidates.
A look at the stock and financial history
Can-Fite stock grew over 80 per cent in the last one year, similar to the NYSE American Healthcare index, which appreciated by 81 per cent in the same period.
Revenues for the nine-month period ended Sept 30, 2020, stood at US$0.61 million as compared to US$1.84 million for the same period of 2019.
The net loss grew to US$10.81 million from US$7.84 million in same period in 2019.
Decrease in revenue were attributed to lower payments received under different distribution agreements from partners. Expense on research and development for the nine-month period of September 30, 2020 were US$9.05 million.
The microcap stock holds a price-to-book ratio of 4.71.
