Avidity Biosciences stock was surging Tuesday after the biopharmaceutical company announced a licensing and research deal with Bristol Myers Squibb.
Avidity stock was soaring 36% to $8.39 in premarket trading Tuesday. Coming into the session, the stock has tumbled 72% this year.
As a part of the collaboration that is focused on the development and commercialization of multiple cardiovascular drugs, Bristol Myers will pay Avidity $60 million in cash and will also purchase about $40 million of Avidity common stock at $7.88 a share.
Avidity will also be eligible to receive up to around $1.35 billion in research and development milestone payments and up to about $825 million in commercial milestone payments. The company will also be eligible to receive royalties up to low double-digits of net sales.
"This collaboration with Avidity represents an important part of our continued investment in innovative therapeutic approaches that have the potential to provide transformative outcomes to patients living with serious cardiovascular conditions," Francisco Ramírez-Valle, head of the Immunology and Cardiovascular Thematic Research Center at Bristol Myers said in the news release.
Shares of Bristol Myers were up 0.5% to $49.27. Coming into the session, the stock has fallen 32% this year.
