On Thursday, Codex DNA jumped 9.5 % after announcing research cooperation and license deal with Pfizer.
Pfizer and the business will collaborate to improve the BioXP platform and produce "certain materials of interest" for Pfizer under the terms of the agreement.
The upgraded platform and accompanying intellectual property rights will be owned by Codex, while the Pfizer Outputs and associated intellectual property rights will be owned by Pfizer.
Pfizer agreed to pay Codex an upfront payment of $8 million, with the possibility of receiving an additional $10 million in near-term milestone payments provided certain technical milestones are fulfilled.
Pfizer has also agreed to make milestone payments if the drugs fulfill specified clinical objectives, with each product being eligible for up to $35 million in milestone payments. Codex may additionally be eligible for a milestone payment of up to $55 million for each exclusive field's unique product.
Pfizer has also agreed to pay up to $60 million in product sales milestones if aggregate net sales meet specific benchmarks, and up to $180 million in exclusive product sales milestones if sales meet the standards.
The deal, according to KeyBanc analyst Paul Knight, "provides yet another important validation of Codex DNA's technology." The analyst currently has an overweight rating on the stock with a $30 price target.