Why Is Gastrointestinal-Focused Palisade Bio Stock Trading Higher Today?

Palisade Bio Inc PALI shares are trading higher after the company announced a licensing agreement with Giiant Pharma Inc.

The license provides the company with the exclusive worldwide rights to develop, manufacture, and commercialize Giiant's proprietary targeted prodrug platform focused on therapies for the multi-billion dollar irritatable bowel syndrome (IBD) market. 

The licensed technologies include Giiant's precision delivery technology platform and multiple product candidates, including the lead asset in development, GT-2108, an orally administered, gut-restricted, colon-specific phosphodiesterase-4 (PDE4) inhibitor prodrug in development for patients affected by moderate-to-severe ulcerative colitis. 

The license also includes the rights to GT-1908, which is anticipated to be developed by the company as a second program, targeting fibrostenotic Crohn's Disease using an oral PDE4 compound.

Palisade will pay a portion of the development costs until the first approval of an IND or CTA (Canadian clinical trial approval). It will, after that, assume all development, manufacturing, and commercialization costs. 

Per the license, Palisade will also pay (i) certain milestone payments (in cash or stock at Palisade's election) and sales-based royalty.

As previously announced by Giiant, the development of GT-2108 is supported by a $500,000 grant received from the US Crohn's and Colitis Foundation through its IBD Ventures program.

Price Action: PALI shares are up 145% at $1.69 on the last check Wednesday.