U.S.-based biopharmaceutical company Arena Pharmaceuticals has licensed its lung disease drug, ralinepag, to biotechnology company United Therapeutics Corp.
Arena Pharmaceuticals is considering to receive $800 million in the drug commercialization deal.
Under the terms of the agreement, Arena will receive up to $400 million in milestone payments as the drug proceeds through clinical trials toward approval.
If the drug reaches the market, Arena can receive royalties on net sales in the low double-digits. Shares of Arena closed at $39.55, up $7.03 on Thursday.