The Dimerix Ltd (ASX: DXB) share price has returned from its trading halt with a bang on Thursday.
In morning trade, the ASX healthcare share was up a massive 130% to 14 cents.
It has since pulled back but remains up an impressive 89% to 11.5 cents at the time of writing.
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Why is this ASX healthcare share rocketing?
Investors have been buying Dimerix shares today after the company announced licensing agreements for its DMX-200 product in Australia, Canada, Europe, and New Zealand.
DMX-200 is the company's phase 3 drug candidate for the treatment of focal segmental glomerulosclerosis (FSGS) kidney disease. It is a rare disease that causes kidney scarring and can lead to end-stage kidney disease. The first analysis outcome from its phase 3 trial is expected in March 2024.
According to the release, the licensing agreement with Advanz Pharma could be worth up to ~$230 million in upfront and milestone payments, plus royalties. The upfront component is $10.8 million potential milestone payments of up to $219 million. The balance will be paid in tiered royalties on net sales.
The release notes that Advanz Pharma will leverage its specialty, hospital, and rare disease expertise and commercial platform to register and effectively promote the product and offer greater patient access. Dimerix retains all rights to commercialise DMX-200 outside of the agreed territories.
The ASX healthcare share's CEO, Dr Nina Webster, said:
We are delighted to be partnering with ADVANZ in Europe, UK, Australia, New Zealand and Canada. The ADVANZ team has a proven record in developing and commercialising medicines in areas with no approved therapies and high unmet needs. ADVANZ's expertise and resources will be invaluable in supporting Dimerix to advance our shared goal of commercialising this novel treatment, and this partnership recognises the decade of work by our dedicated team, consultants, trial participants, and investigators in the developing a new therapy for patients with FSGS.
