Arcturus (NASDAQ: ARCT) stock shot up in after-hours trading on Tuesday as the clinical-stage messenger RNA medicines company announced a strategic partnership with CSL Seqirus, which is involved with the research, development, manufacture, and global commercialization of vaccines. CSL Seqirus is a part of CSL Limited.
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As a part of this collaboration, Arcturus will provide CSL Seqirus with a “license to their self-amplifying mRNA technology to support the research, development, manufacture, and commercialization of vaccines for SARS-CoV-2 (COVID-19), influenza, pandemic preparedness, as well as three other globally prevalent respiratory infectious diseases.”
This agreement will also result in Arcturus receiving an upfront payment of $200 million and will also receive in excess of $4 billion in potential development and commercial milestones.
As a part of this partnership, ARCT will be eligible for 40% profit sharing when it comes to COVID-19 vaccines and will receive royalties in up to double-digit for vaccines against influenza, pandemic preparedness, and three additional respiratory infectious diseases.