June 3 (Bloomberg) -- MorphoSys AG said it sold rights to its experimental MOR103 treatment to GlaxoSmithKline Plc for as much as 445 million euros ($577 million) as well as royalties on potential sales. The company raised its revenue forecast.
Shares of the Martinsried, Germany-based company jumped as much as 6.6 percent after the announcement, and traded 1.3 percent higher at 37.80 euros as of 3:43 p.m. in Frankfurt today. The stock has gained almost 29 percent this year.
The deal comes with an upfront payment of 22.5 million euros, prompting the company to forecast full-year revenue of 68 million euros to 72 million euros, compared with a previous outlook for 48 million euros to 52 million euros. MorphoSys will also receive success-based payments of as much as 423 million euros, and a double-digit cut of future sales. MOR103 is currently in mid-stage clinical trials in rheumatoid arthritis and in early stage trials in multiple sclerosis.
“This transaction is a major milestone for MorphoSys,” Chief Executive Officer Simon Moroney said in the statement.“We hope this alliance will result in a significant return on investment for the MOR103 program and to become a major value driver for MorphoSys.”
MorphoSys gave a new forecast for earnings before interest and tax with a range from a loss of 2 million euros to earnings of 2 million euros at that level.
This is the first proprietary drug for MorphoSys, which develops biological drugs for partners such as Roche Holding AG and Novartis AG.
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