TG Therapeutics Inc. (NASDAQ: TGTX) can be seen expanding on its global deal with Jubilant Biosys. In a recent development, the company announced that it was bringing another player called Checkpoint Therapeutics on board as a sub-licensee.
TG Therapeutics Inc. (NASDAQ: TGTX) and Jubilant Biosys earlier entered into a global agreement in which TG Therapeutics will develop and later commercialize a line of Jubilant drugs for treatment of a certain type of cancer. Specifically, TG Therapeutics said the deal involved collaborating to develop and then market Jubilant’s BET inhibitor targeted at hematological malignancies.
According to the officials of TG Therapeutics, they have extended their rights to Checkpoint who will help with developing and commercializing of Jubilant’s compounds.
Unmet medical need
The compounds that TG Therapeutics Inc. (NASDAQ: TGTX) is licensing from Jubilant address an area of unmet medical need in cancer treatment. As such, the idea of bringing Checkpoint on board appears predicted on the desire to accelerate the develop the compounds and also ensure that there are enough supplies in the market to meet anticipated strong demand once the products are launched in the market.
How much is changing hands?
TG Therapeutics didn’t elaborate on the financial details of the sub-license deal it has inked with Checkpoint. However, it did say that the agreement with Jubilant involves a payment of upfront licensing fee to the tune of $1 million. Jubilant will also be eligible to receive additional milestone payments in future depending on the progress of its compounds at preclinical, clinical and regulatory levels.
A single-digital royalty rate was also agreed on as part of the deal with Jubilant. TG Therapeutics said that total milestone payments to Jubilant will be capped at $177 million.
What happened to TG Therapeutics Inc. (NASDAQ: TGTX) in 1Q2016?
TG Therapeutics Inc. (NASDAQ: TGTX)’s bottom-line improved in 1Q2016 thanks largely to lower non-cash items related to compensations. The company posted a net loss of $13.8 million or $0.28 a share. That compared with a net loss per share of $0.35 a year earlier.