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RaQualia Pharma surges for first time in 10 days as U.S. partner exercises option, upfront payment confirmed
RaQualia Pharma Inc. <4579> surged for the first time in 10 sessions. After the close of trading on May 20, the company announced it received notice from U.S.-based Velovia Pharma that the U.S. firm will exercise an option for one of four out-licensed compounds to develop it as a veterinary drug. RaQualia Pharma confirmed it will receive an upfront option exercise fee, acting as a positive catalyst.
Upon the option exercise, the company secured the right to receive milestone payments based on development progress. If the veterinary drug reaches commercialization, RaQualia Pharma may receive sales royalties and milestone payments from Velovia Pharma. The upfront fee will be recorded as revenue, which the company stated is already factored into its current fiscal year earnings guidance.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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