By Colin Kellaher
Xilio Therapeutics shares took flight in premarket trading Wednesday after the clinical-stage biotechnology company formed a potentially lucrative collaboration with AbbVie that includes an equity investment at a rich premium.
Xilio, which had a market capitalization of around $30 million based on Tuesday's closing price of 65.7 cents, said AbbVie is investing $10 million at $2.30 a share and will also make an upfront payment of $42 million in cash as part of the deal.
Shares of the Waltham, Mass., company were recently up 113% to $1.40 in premarket trading.
Xilio said it is also eligible to receive up to about $2.1 billion in additional payments, including up to $305 million in program nomination fees, preclinical development option extension fees and option fees, and up to $1.8 billion in development, regulatory and sales-based milestones.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
February 12, 2025 08:26 ET (13:26 GMT)
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