Shares of junior biopharmaceutical company Pharmaxis Ltd. (ASX: PXS) have skyrocketed more than 60% today to be trading at 26.5 cents, after having hit a high of 27 cents earlier in the session. That compares to a 1.1% decline for the ALL ORDINARIES (Index: ^AXAO) (ASX: XAO) for the day.
Pharmaxis, which boasted a market capitalisation of just $52 million prior to today's rally, soared after it sold the rights of drug candidate PXS4728A to Boehringer Ingelheim, a global pharmaceutical giant, in a deal that could be worth up to $750 million if the drug is successful.
According to an update from Pharmaxis today, Beohringer will develop the drug for the treatment of liver-related condition non-alcoholic steatohepatitis (NASH). Boehringer has made a $39 million upfront payment for the drug, while up to $711 million worth of other payments could be made as certain sales and other milestones are reached.
Pharmaxis said: "Boehringer Ingelheim's clinical expertise will now be applied to the development of this drug which has the potential to make a real difference in the treatment of diseases with high unmet clinical need."
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