Why LAVA Therapeutics Stock Is Up More Than 100% Today

LAVA Therapeutics N.V. LVTX shares are trading higher Monday after the company and Seagen Inc SGEN announced an exclusive license agreement in which Seagen will work to develop, manufacture and commercialize LAVA-1223.

Seagen will pay LAVA $50 million upfront and receive an exclusive global license for LAVA-1223. Seagen will also pay up to approximately $650 million in potential development, regulatory and commercial milestones, as well as royalties ranging from the single digits to the mid-teens on future sales.

LAVA-1223 utilizes LAVA's proprietary Gammabody technology to target epidermal growth factor receptor (EGFR)-expressing solid tumors.

"This agreement enables LAVA to further validate its platform in a second solid tumor product candidate, bringing us closer toward our goal of generating effective Gammabody medicines for cancer patients," said Stephen Hurly, president and CEO of LAVA Therapeutics.

LAVA Therapeutics is a clinical-stage immuno-oncology company utilizing its proprietary Gammabody platform to develop a portfolio of bispecific gamma delta T cell engagers for the potential treatment of solid and hematological malignancies.

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LVTX Price Action: LAVA has a 52-week high of $6.90 and a 52-week low of $2.28.

The stock was up 142.1% at $5.81 at time of publication, according to Benzinga Pro.

Photo: Konstantin Kolosov from Pixabay.