Microcap Conatus teams up with pharma giant Novartis on NASH drug, shares rocket up
The microcap biotech Conatus Pharmaceuticals $CNAT just struck a licensing deal with Novartis for its lead drug that’s worth about as much as its market cap at today’s close — and that’s just the cash portion of the agreement. Its share price rocketed up, climbing 146% in early-morning trading Tuesday.
San Diego-based Conatus is getting $50 million upfront from pharma giant Novartis, which gets an option on emricasan 9 months after the drug hit a slate of biomarker endpoints in a small mid-stage study for fatty liver disease and NASH. Novartis is paying half of the Phase IIb costs and will hand over another $7 million if it exercises its option in the deal.
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