By Sam Boughedda
Investing.com -- IGM Biosciences Inc (NASDAQ:IGMS) announced a collaboration agreement with Sanofi (NASDAQ:SNY) on Tuesday, causing its shares to rally.
The agreement will see the companies work together to create, develop, manufacture, and commercialize IgM antibody agonists against three oncology targets and three immunology/inflammation targets.
According to Sanofi, the terms of the collaboration see IGM receive a $150 million upfront payment, as well as Sanofi expressing an interest in purchasing up to $100 million of IGM common stock.
In addition, IGM will lead the research and development activities and assume related costs from the approval of the first biologics license application in exchange for up to $940 million in development and regulatory milestones per oncology target.
Sanofi will lead all following development and commercialization activities for its oncology target after the first marketing approval, leading to the companies sharing profits 50:50 and IGM eligible to receive tiered royalties on sales in the rest of the world.
"This partnership builds on an existing research collaboration with Sanofi and is a key step towards our goal of unlocking the full breadth of potential for this important new class of therapeutics," said CEO of IGM Biosciences Fred Schwarzer.
IGM also reported its earnings for the fourth quarter on Tuesday. Earnings per share came in at $-1.50, beating analysts' forecasts by 2 cents. Shares rose 95.8%.