What Is Driving The Provention Bio (PRVB) Stock Higher Today?

A collaboration deal led Provention Bio Inc.’s stock to gain 22.61% in Thursday’s trading session to $6.07. PRVB stock closed the last trading session at $4.95.

PRVB has entered into what kind of collaboration?

In order to launch its lead investigational drug candidate, teplizumab, Provention Bio has entered into a co-promotion agreement with Sanofi US. This agreement enables PRVB to leverage Sanofi’s expertise, capabilities, and commercial resources to support the FDA’s review of teplizumab for clinical type 1 diabetes delays in at-risk patients. In order to meet the user fee goal, the Biologics License Application must be submitted by November 17, 2022.

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Collaborations and co-promotions:

As a result of the agreement, Sanofi will expand its reach among key healthcare professionals in the United States by committing commercial resources, including diabetes field specialists, account directors, field-based reimbursement, and medical science liaisons. According to the agreement, Provention Bio will reimburse Sanofi’s field force costs associated with commercializing teplizumab. Teplizumab remains the property of PRVB and it is responsible for its commercialization.

First Right of Negotiation for Global Commercial Rights:

A one-time payment of $20 million was also sufficient for Prevention Bio to grant Sanofi an exclusive, one-time right of first negotiation (ROFN) to acquire exclusive worldwide rights to commercialize teplizumab for Type 1 diabetes indications in humans. However, PRVB retains certain rights to discuss certain transactions with third parties. Under certain conditions, Sanofi may extend its ROFN until June 30, 2023.

Investing in equity:

PRVB and Sanofi also entered into a Securities Purchase Agreement (the “Purchase Agreement”) simultaneously with their co-promotion agreement. Sanofi has agreed to purchase $35 million of the Company’s common stock at a premium over the daily volume-weighted average per share price for the five consecutive trading days prior to the closing date if teplizumab is approved by the FDA. PRVB will determine the closing date and it will not be later than February 16, 2023.

What will be the process of collaboration?

During the launch, Provention Bio (PRVB) will be able to substantially expand its planned commercial footprint through this collaboration with Sanofi US, supporting increased screening and product awareness as it prepares to launch a new therapy that, if approved, will have a dramatic impact on patients and their families lives. As a result, PRVB will be able to reach a broader patient population with greater efficiency and will be able to complement Sanofi’s long-standing relationships with key US healthcare professionals.

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