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Shares of Aveo Oncology (AVEO) were up as much as 126% today after the company announced a partnership deal with Novartis (NVS). This partnership deal includes the compound AV-380 and includes all related antibodies to this compound. Novartis is making an upfront payment to Aveo of $15 million based off of this partnership deal.
Aveo will have the potential to unlock a total of $311 million with clinical and regulatory milestones, reimbursement costs, and clinical sales. This partnership marks a nice gain for the company as it had been trading low for years. This is because back in 2013 the FDA had rejected Aveo's kidney cancer drug -- known as tivozanib -- saying that the results sent were inconclusive to move forward with approval.
Today Aveo has partially redeemed itself as it attempts to advance AV-380 into the clinic with this partnership. This AV-380 compound treats a problem called "cancer cachexia". Cancer cachexia is weight loss that occurs in patients because of their cancer, which can make them unable to replenish their body with nutrition. These patients are known to have fatigue, and be unable to perform daily routine tasks. If Aveo can successfully produce this drug with its partner Novartis then they can help improve patients' lives.
AVEO was up 45% at market close. NVS was up slightly.
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