NPS Pharmaceuticals Inc., a maker of rare-disease drugs, rose the most in five months after the company regained worldwide marketing and development rights to its therapy Gattex from partner Takeda Pharmaceutical Co.
NPS gained 9.3 percent to $9.88 at the close in New York, its largest single-day increase since Oct. 12. The company’s shares have increased 47 percent in the past 12 months.
Takeda will receive $50 million in NPS stock for the drug known chemically as teduglutide, Bedminster, New Jersey-based NPS said today in a statement. The therapy helps patients with short-bowel syndrome absorb nutrients.
“This transaction establishes NPS as a global commercial rare disease company,” Francois Nader, NPS’s president and chief executive officer, said in the statement.
The drugmaker will also buy back rights to recombinant human parathyroid hormone 1-84, known as Preotact in Europe. When sales of both drugs exceed $750 million during a calendar year, NPS will pay Osaka, Japan-based Takeda an additional $30 million in cash or stock.
The Food and Drug Administration cleared Gattex in December, while requiring a study of at least 10 years of potential side effects. Gattex helps wean patients off a time-consuming intravenous nutrition program. The therapy will be marketed as Revestive in Europe.
NPS, which reported about $131 million in 2012 revenue, expects peak annual sales from Gattex to exceed $350 million, Nader said during a January conference call.
Short-bowel syndrome is the result of conditions such as Crohn’s disease or trauma that requires much of the small intestine to be removed, causing a reduced ability to absorb water and nutrients.