Corvus rallies on co-founding China-based Angel Pharmaceuticals (NASDAQ:CRVS)

Corvus Pharmaceuticals (NASDAQ:CRVS) +42.5% PM, inked a strategic collaboration with Angel Pharmaceuticals for the development and commercialization of its precisely targeted investigational medicines pipeline in China.

Post the collaboration, Corvus will initially retain a 49.7% equity stake in Angel and will be entitled to designate three individuals on the latter’s five-person board.

Formed as a wholly-owned subsidiary of Corvus, China-based biopharmaceutical company, Angel Pharmaceuticals seeks to bring innovative quality medicines to Chinese patients for treatment of serious diseases including cancer, autoimmune diseases and infectious diseases.

Angel was launched with a post-money valuation of $106M, based on a $41M cash investment from a Chinese investor group.

It has licensed the rights to develop and commercialize Corvus’ three clinical-stage candidates – ciforadenant, CPI-006 and CPI-818 – in greater China and obtained global rights to Corvus’ BTK inhibitor preclinical programs.

Quick look at near-term milestones and value-drivers:

“We have already begun working with the Angel leadership to initiate clinical trials in China with ciforadenant, CPI-006 and CPI-818 in cancer, autoimmune diseases and infectious diseases within the next 12 to 18 months,” president & CEO Richard A. Miller, M.D. commented.

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