Rigel Pharmaceuticals Inc. shares soared 39% in premarket trade Thursday, after the company said it has agreed to partner with Eli Lilly and Co. in developing RIPK1 Inhibitors to treat immunological and neurodegenerative diseases. As part of the deal, Rigel will receive an upfront cash payment of $125 million and have the potential to earn up to $835 million in milestone payment on reaching certain goals. Lilly will be responsible for global commercialization of Rigel’s lead RIPK1 inhibitor, R552, and Rigel will have the right to co-commercialize the treatment in the U.S. Rigel shares have gained 101% in the last 12 months. Lilly shares were down 1.4%, but have gained 46% in the last 12 months, while the S&P 500 has gained 17%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.