- The LVTX stock added more than 128 per cent on September 26.
- Its price soared over 62 per cent in the running quarter through September 26.
- Lava Therapeutics has entered into a license agreement with Seagen.
The stocks of the biotech firm Lava Therapeutics N.V. (NASDAQ: LVTX) gained traction in the market on Monday, September 26, as seen by its mounting price.
The stock of LVTX rose more than 128 per cent on Monday morning, making it one of the top movers in the morning session on September 26.
Let's take a closer look into the recent developments and key factors of the healthcare firm with Kalkine Media®.
Why is it rising?
Lava Therapeutics is a clinical-stage cancer-focused biotechnology company that focuses on developing its exclusive Gammabody platform.
Among its most recent developments, the Netherlands-based healthcare company entered into a license agreement with Seagen Inc. (NASDAQ: SGEN). Seagen is one of the leading biotechnology companies with a market cap of over US$ 25.6 billion.
Meanwhile, under the announced license agreement of September 26, Seagen would focus on developing, manufacturing, and commercialising LAVA-1223. This advanced preclinical product uses the exclusive Gammabody platform of the Netherlands-based company.
LAVA-1223 uses the Gammabody technology for targeting the epidermal growth factor receptor (EGFR), which expresses solid tumours.
According to the announcement, Seagen would receive an exclusive global licensing for the advanced preclinical product of Lava Therapeutics and pay US$ 50 million upfront to the clinical-stage biotechnology company.
In addition, Seagen would spend about US$ 650 million for development, regulatory, and other factors, while the royalties would range from single digits to mid-teens on future sales.
Moreover, the agreement would also allow Seagen exclusive negotiating rights for applying the Gammabody platform of Lava Therapeutics on a maximum of two additional tumour targets.
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The price of the LVTX stock surged 128.32 per cent at 9:32 am ET on September 26 to trade at US$ 5.4798 after closing at US$ 2.4 in the prior session. LVTX's trading volume was over 13.49 million during writing.