China Medical Systems has acquired the rights to Destiny's full pipeline of drugs for commercialisation in China and other parts of Asia.
Companies: Destiny Pharma Plc
Destiny Pharma (LON: DEST) shares jumped this morning after the Group announced its deal with China Medical System Holdings (CMS) had finalised.
The agreement gives CMS full rights to Destiny's pipeline of drug candidates in China and a number of other Asian countries, with CMS carrying out all R&D and commercialisation in the region.
Destiny develops drugs which tackle the issue of antimicrobial resistance, where an antibiotic or antiviral becomes ineffective.
DEST will benefit from the deal with payments made upon certain milestones as well as receiving a manufacturing margin on any product that is brought to market.
Group CEO Neil Clark was understandably pleased about the deal, noting Asia is "an important region" and CMS is "the ideal strategic partner" to bring the Group's products to China and beyond.
Management also noted GM of International Operations at CMS Dr Huaizheng Peng will be also appointed as a Non-Executive Director of Destiny.
In a second RNS this morning the Group announced CMS had invested £3m in DEST through a subscription for 1,910,828 new ordinary shares at a price of 157p per share.
Destiny is a newcomer to London's junior market having IPO'd less than three months ago at a price of 217p per share.
The stock tumbled soon after and trades at c. 134p after today's price hike and has a Market Cap of £48m.
Image courtesy South China Morning Post