AbbVie Inc. will pay up to $800 million to drug developer Infinity Pharmaceuticals Inc. in a collaboration on a potential cancer treatment. Share of Infinity soared on the news.
AbbVie will pay $275 million upfront to Cambridge, Massachusetts-based Infinity plus up to $530 million in additional payments if the treatment, duvelisib, reaches certain development and commercial milestones. Infinity is studying duvelisib as a possible treatment for blood cancers such as leukemia and non-Hodgkin lymphoma.
The companies will both sell duvelisib in the United States and share any profits. AbbVie will be responsible for selling it outside the U.S., and Infinity would receive royalties on those sales.
Shares of Infinity soared about 44 percent, or $4.81, to $15.73. The drug developer has no products on the market and reported no revenue in this year’s second quarter.
Shares of North Chicago-based AbbVie, which sells the blockbuster anti-inflammatory drug Humira, rose 44 cents to $55.51.
THE ASSOCIATED PRESS