January 10, 2011 / 4:51 PM / 9 years ago

UPDATE 1-Zalicus' research partner Novartis extends contract

* Contract for development in oncology extended by a year

* Zalicus to start mid-stage study on arthritis drug in Q2 * Zalicus shares rise 11 pct

Jan 10 (Reuters) - Zalicus Inc ZLCS.O said its oncology research collaborator, Novartis NOVN.VX, was extending their contract by a year to May 2012, sending its shares up 11 percent.

The companies had signed an initial two-year agreement in May 2009 to develop novel anti-cancer compounds using Zalicus’ proprietary screening technology.

As per the original agreement, Zalicus got a $4 million upfront payment and was eligible to receive up to $58 million in milestones.

Zalicus also said it plans to advance its arthritis drug Synavive into mid-stage trials in the second quarter.

The Cambridge, Massachusetts-based company’s shares, which have gained half their value in the past six months, rose 11 percent to $2.39, their highest in nearly 18 months, on Monday on Nasdaq. (Reporting by Shravya Jain and Krishnakali Sengupta in Bangalore; Editing by Anne Pallivathuckal)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below